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[Congressional Record: July 25, 2002 (House)]
[Page H5531-H5581]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr25jy02-83]                         
 
[[pp. H5531-H5581]] BOB STUMP NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2003

[[Continued from page H5530]]

[[Page H5531]]

     North Atlantic Treaty Organization Security Investment 
     program (and authorizations of appropriations therefor) for 
     which appropriated funds have been obligated before the later 
     of--
       (1) October 1, 2005; or
       (2) the date of the enactment of an Act authorized funds 
     for fiscal year 2005 for military construction projects, land 
     acquisition, family housing projects and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program.

     SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   2000 PROJECTS.

       (a) Extension of Certain Projects.--Notwithstanding section 
     2701 of the Military Construction Authorization Act for 
     Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
     841), authorizations set forth in the tables in subsection 
     (b), as provided in section 2302 or 2601 of that Act, shall 
     remain in effect until October 1, 2003, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2004, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

                               Air Force: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma..............................  Tinker Air Force Base....  Replace Family Housing (41         $6,000,000
                                                                    Units).
Texas.................................  Lackland Air Force Base..  Dormitory....................      $5,300,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Virginia..............................  Fort Pickett.............  Multi-Purpose Range Complex-      $13,500,000
                                                                    Heavy.
----------------------------------------------------------------------------------------------------------------

     SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 
                   1999 PROJECTS.

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 1999 
     (division B of Public Law 105-261; 112 Stat. 2199), 
     authorizations set forth in the table in subsection (b), as 
     provided in section 2302 of that Act and extended by section 
     2702 of the Military Construction Authorization Act for 
     Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
     1301), shall remain in effect until October 1, 2003, or the 
     date of the enactment of an Act authorizing funds for 
     military construction for fiscal year 2004, whichever is 
     later.
       (b) Table.--The table referred to in subsection (a) is as 
     follows:

                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,988,000
                                                                    Units).
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    Units).
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    Units).
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base.                Units).
----------------------------------------------------------------------------------------------------------------

     SEC. 2704. EFFECTIVE DATE.

       Titles XXI, XXII, XXIII, XXIV, XXV, XXVI, and XXVII of this 
     Act shall take effect on the later of--
       (1) October 1, 2002; or
       (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA.

       (a) Increase in Number of Units Authorized for Lease at 
     Current Maximum Amount.--Paragraph (3) of section 2828(e) of 
     title 10, United States Code, is amended by striking ``800 
     units'' and inserting ``1,175 units''.
       (b) Authority To Lease Additional Number of Units at 
     Increased Maximum Amount.--That section is further amended--
       (1) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively;
       (2) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) In addition to the units of family housing referred 
     to in paragraph (1) for which the maximum lease amount is 
     $25,000 per unit per year, the Secretary of the Army may 
     lease not more than 2,400 units of family housing in Korea 
     subject to a maximum lease amount of $35,000 per unit per 
     year.'';
       (3) in paragraph (5), as so redesignated, by striking ``and 
     (3)'' and inserting ``(3), and (4)''; and
       (4) in paragraph (6), as so redesignated, by striking 
     ``53,000'' and inserting ``55,775''.

     SEC. 2802. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING 
                   CONSTRUCTION OVERSEAS.

       Section 803 of the Military Construction Authorization Act, 
     1984 (Public Law 98-115; 10 U.S.C. 2821 note) is repealed.

     SEC. 2803. MODIFICATION OF LEASE AUTHORITIES UNDER 
                   ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                   IMPROVEMENT OF MILITARY HOUSING.

       (a) Leasing of Housing.--Subsection (a) of section 2874 of 
     title 10, United States Code, is amended to read as follows:
       ``(a) Lease Authorized.--(1) The Secretary concerned may 
     enter into contracts for the lease of housing units that the 
     Secretary determines are suitable for use as military family 
     housing or military unaccompanied housing.
       ``(2) The Secretary concerned shall utilize housing units 
     leased under paragraph (1) as military family housing or 
     military unaccompanied housing, as appropriate.''.
       (b) Repeal of Interim Lease Authority.--Section 2879 of 
     such title is repealed.
       (c) Conforming and Clerical Amendments.--(1) The heading 
     for section 2874 of such title is amended to read as follows:

     ``Sec. 2874. Leasing of housing''.

       (2) The table of sections at the beginning of subchapter IV 
     of chapter 169 of such title is amended--
       (A) by striking the item relating to section 2874 and 
     inserting the following new item:

``2874. Leasing of housing.'';
     and
       (B) by striking the item relating to section 2879.

        Subtitle B--Real Property and Facilities Administration

     SEC. 2811. AGREEMENTS WITH PRIVATE ENTITIES TO ENHANCE 
                   MILITARY TRAINING, TESTING, AND OPERATIONS.

       (a) In General.--Chapter 159 of title 10, United States 
     Code, is amended by inserting after section 2696 the 
     following new section:

     ``Sec. 2697. Agreements with private entities to enhance 
       military training, testing, and operations

       ``(a) Agreements With Private Entities Authorized.--The 
     Secretary of Defense or the Secretary of a military 
     department may enter into an agreement with a private entity 
     described in subsection (b) to address the use or development 
     of real property in the vicinity of an installation under the 
     jurisdiction of such Secretary for purposes of--
       ``(1) limiting any development or use of such property that 
     would otherwise be incompatible with the mission of such 
     installation; or
       ``(2) preserving habitat on such property in a manner that 
     is compatible with both--
       ``(A) current or anticipated environmental requirements 
     that would or might otherwise restrict, impede, or otherwise 
     interfere, whether directly or indirectly, with current or 
     anticipated military training, testing, or operations on such 
     installation; and
       ``(B) current or anticipated military training, testing, or 
     operations on such installation.
       ``(b) Covered Private Entities.--A private entity described 
     in this subsection is any private entity that has as its 
     stated principal organizational purpose or goal the 
     conservation, restoration, or preservation of land and 
     natural resources, or a similar purpose or goal.

[[Page H5532]]

       ``(c) Inapplicability of Certain Contract Requirements.--
     Chapter 63 of title 31 shall not apply to any agreement 
     entered into under this section.
       ``(d) Acquisition and Acceptance of Property and 
     Interests.--(1) Subject to the provisions of this subsection, 
     an agreement with a private entity under this section--
       ``(A) may provide for the private entity to acquire all 
     right, title, and interest in and to any real property, or 
     any lesser interest therein, as may be appropriate for 
     purposes of this section; and
       ``(B) shall provide for the private entity to transfer to 
     the United States, upon the request of the United States, any 
     property or interest so acquired.
       ``(2) Property or interests may not be acquired pursuant to 
     an agreement under this section unless the owner of such 
     property or interests, as the case may be, consents to the 
     acquisition.
       ``(3) An agreement under this section providing for the 
     acquisition of property or interests under paragraph (1)(A) 
     shall provide for the sharing by the United States and the 
     private entity concerned of the costs of the acquisition of 
     such property or interests.
       ``(4) The Secretary concerned shall identify any property 
     or interests to be acquired pursuant to an agreement under 
     this section. Such property or interests shall be limited to 
     the minimum property or interests necessary to ensure that 
     the property concerned is developed and used in a manner 
     appropriate for purposes of this section.
       ``(5) The Secretary concerned may accept on behalf of the 
     United States any property or interest to be transferred to 
     the United States under paragraph (1)(B).
       ``(6) The Secretary concerned may, for purposes of the 
     acceptance of property or interests under this subsection, 
     accept an appraisal or title documents prepared or adopted by 
     a non-Federal entity as satisfying the applicable 
     requirements of section 301 of the Uniform Relocation 
     Assistance and Real Property Acquisition Policies Act of 1970 
     (42 U.S.C. 4651) or section 355 of the Revised Statutes (40 
     U.S.C. 255) if the Secretary finds that such appraisal or 
     title documents substantially comply with such requirements.
       ``(e) Additional Terms and Conditions.--The Secretary 
     concerned may require such additional terms and conditions in 
     an agreement under this section as such Secretary considers 
     appropriate to protect the interests of the United States.
       ``(f) Funding.--(1) Except as provided in paragraph (2), 
     amounts authorized to be appropriated to the Range 
     Enhancement Initiative Fund of the Department of Defense are 
     available for purposes of any agreement under this section.
       ``(2) In the case of an installation operated primarily 
     with funds authorized to be appropriated for research, 
     development, test, and evaluation, funds authorized to be 
     appropriated for the Department of Defense, or the military 
     department concerned, for research, development, test, and 
     evaluation are available for purposes of an agreement under 
     this section with respect to such installation.
       ``(3) Amounts in the Fund that are made available for an 
     agreement of a military department under this section shall 
     be made available by transfer from the Fund to the applicable 
     operation and maintenance account of the military department, 
     including the operation and maintenance account for the 
     active component, or for a reserve component, of the military 
     department.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2696 the following new item:

``2697. Agreements with private entities to enhance military training, 
              testing, and operations.''.

     SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL 
                   RESOURCE CONSERVATION.

       (a) In General.--(1) Chapter 159 of title 10, United States 
     Code, as amended by section 2811 of this Act, is further 
     amended by inserting after section 2697 the following new 
     section:

     ``Sec. 2698. Conveyance of surplus real property for natural 
       resource conservation

       ``(a) Authority To Convey.--Subject to subsection (c), the 
     Secretary of a military department may, in the sole 
     discretion of such Secretary, convey to any State or local 
     government or instrumentality thereof, or private entity that 
     has as its primary purpose or goal the conservation of open 
     space or natural resources on real property, all right, 
     title, and interest of the United States in and to any real 
     property, including any improvements thereon, under the 
     jurisdiction of such Secretary that is described in 
     subsection (b).
       ``(b) Covered Real Property.--Real property described in 
     this subsection is any property that--
       ``(1) is suitable, as determined by the Secretary 
     concerned, for use for the conservation of open space or 
     natural resources;
       ``(2) is surplus property for purposes of title II of the 
     Federal Property and Administrative Services Act of 1949 (40 
     U.S.C. 471 et seq.); and
       ``(3) has been available for public benefit conveyance 
     under that title for a sufficient time, as determined by the 
     Secretary concerned in consultation with the Administrator of 
     General Services, to permit potential claimants to seek 
     public benefit conveyance of such property, but without the 
     submittal during that time of a request for such conveyance.
       ``(c) Conditions of Conveyance.--Real property may not be 
     conveyed under this section unless the conveyee of such 
     property agrees that such property--
       ``(1) shall be used and maintained for the conservation of 
     open space or natural resources in perpetuity, unless 
     otherwise provided for under subsection (e); and
       ``(2) may be subsequently conveyed only if--
       ``(A) the Secretary concerned approves in writing such 
     subsequent conveyance;
       ``(B) the Secretary concerned notifies the appropriate 
     committees of Congress of the subsequent conveyance not later 
     than 21 days before the subsequent conveyance; and
       ``(C) after such subsequent conveyance, shall be used and 
     maintained for the conservation of open space or natural 
     resources in perpetuity, unless otherwise provided for under 
     subsection (e).
       ``(d) Use for Incidental Production of Revenue.--Real 
     property conveyed under this section may be used for the 
     incidental production of revenue, as determined by the 
     Secretary concerned, if such production of revenue is 
     compatible with the use of such property for the conservation 
     of open space or natural resources, as so determined.
       ``(e) Reversion.--If the Secretary concerned determines at 
     any time that real property conveyed under this section is 
     not being used and maintained in accordance with the 
     agreement of the conveyee under subsection (c), all right, 
     title, and interest in and to such real property, including 
     any improvements thereon, shall revert to the United States, 
     and the United States shall have the right of immediate entry 
     thereon.
       ``(f) Property Under Base Closure Laws.--The Secretary 
     concerned may not make a conveyance under this section of any 
     real property to be disposed of under a base closure law in a 
     manner that is inconsistent with the requirements and 
     conditions of such base closure law.
       ``(g) Additional Terms and Conditions.--The Secretary 
     concerned may establish such additional terms and conditions 
     in connection with a conveyance of real property under this 
     section as such Secretary considers appropriate to protect 
     the interests of the United States.
       ``(h) Definitions.--In this section:
       ``(1) The term `appropriate committees of Congress' has the 
     meaning given that term in section 2801(c)(4) of this title.
       ``(2) The term `State' includes the District of Columbia, 
     the Commonwealth of Puerto Rico, the Commonwealth of the 
     Northern Marianas, and the territories and possessions of the 
     United States.
       ``(3) The term `base closure law' means the following:
       ``(A) Section 2687 of this title.
       ``(B) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act of 1988 (10 U.S.C. 2687 
     note).
       ``(C) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       ``(D) Any other similar authority for the closure or 
     realignment of military installations that is enacted after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2003.''.
       (2) The table of sections at the beginning of chapter 159 
     of that title, as amended by section 2811 of this Act, is 
     further amended by inserting after the item relating to 
     section 2687 the following new item:

``2698. Conveyance of surplus real property for natural resource 
              conservation.''.
       (b) Acceptance of Funds to Cover Administrative Expenses.--
     Section 2695(b) of that title is amended by adding at the end 
     the following new paragraph:
       ``(5) The conveyance of real property under section 2698 of 
     this title.''.
       (c) Agreements With Private Entities.--Section 2701(d) of 
     that title is amended--
       (1) in paragraph (1), by striking ``with any State or local 
     government agency, or with any Indian tribe,'' and inserting 
     ``any State or local government agency, any Indian tribe, or, 
     for purposes under section 2697 or 2698 of this title, with 
     any private entity''; and
       (2) by striking paragraph (4), as redesignated by section 
     311(1) of this Act, and inserting the following new paragraph 
     (4):
       ``(4) Definitions.--In this subsection:
       ``(A) The term `Indian tribe' has the meaning given such 
     term in section 101(36) of Comprehensive Environmental 
     Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
     9601(36)).
       ``(B) The term `private entity' means any private entity 
     that has as its stated principal organizational purpose or 
     goal the conservation, restoration, or preservation of land 
     and natural resources, or a similar purpose or goal.''.

     SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION 
                   IN LONG-TERM FACILITY MAINTENANCE COSTS.

       (a) Administrator of Program.--Subsection (a) of section 
     2814 of the Military Construction Authorization Act for 
     Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
     1310; 10 U.S.C. 2809 note) is amended by striking ``Secretary 
     of the Army'' and inserting ``Secretary of Defense or the 
     Secretary of a military department''.
       (b) Contracts.--Subsection (b) of that section is amended 
     to read as follows:
       ``(b) Contracts.--(1) Not more than 12 contracts may 
     contain requirements referred to in subsection (a) for the 
     purpose of the demonstration program.
       ``(2) Except as provided in paragraph (3), the 
     demonstration program may only cover contracts entered into 
     on or after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2003.
       ``(3) The Secretary of the Army shall treat any contract 
     containing requirements referred to in subsection (a) that 
     was entered into under the authority in that subsection 
     during the period beginning on December 28, 2001, and ending 
     on the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2003 as a contract for the 
     purpose of the demonstration program under that 
     subsection.''.

[[Page H5533]]

       (c) Reporting Requirements.--Subsection (d) of that section 
     is amended by striking ``Secretary of the Army'' and 
     inserting ``Secretary of Defense''.
       (d) Funding.--(1) Subsection (f) of that section is amended 
     by striking ``the Army'' and inserting ``the military 
     departments or defense-wide''.
       (2) The amendment made by paragraph (1) shall not affect 
     the availability for the purpose of the demonstration program 
     under section 2814 of the Military Construction Authorization 
     Act for Fiscal Year 2002, as amended by this section, of any 
     amounts authorized to be appropriated before the date of the 
     enactment of this Act for the Army for military construction 
     that have been obligated for the demonstration program, but 
     not expended, as of that date.

                      Subtitle C--Land Conveyances

     SEC. 2821. CONVEYANCE OF CERTAIN LANDS IN ALASKA NO LONGER 
                   REQUIRED FOR NATIONAL GUARD PURPOSES.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the State of Alaska, or any governmental entity, 
     Native Corporation, or Indian tribe within the State of 
     Alaska, all right, title, and interest of the United States 
     in and to any parcel of real property, including any 
     improvements thereon, described in subsection (b) that the 
     Secretary considers appropriate in the public interest.
       (b) Covered Property.--Real property described in this 
     subsection is any property located in the State of Alaska 
     that, as determined by the Secretary--
       (1) is currently under the jurisdiction of the Department 
     of the Army;
       (2) before December 2, 1980, was under the jurisdiction of 
     the Department of the Army for use of the Alaska National 
     Guard;
       (3) is located in a unit of the National Wildlife Refuge 
     System designated in the Alaska National Interest Lands 
     Conservation Act (94 Stat. 2371; 16 U.S.C. 1301 note);
       (4) is excess to the needs of the Alaska National Guard and 
     the Department of Defense; and
       (5) is in such condition that--
       (A) the anticipated cost to the United States of retaining 
     such property exceeds the value of such property; or
       (B) such property is unsuitable for retention by the United 
     States.
       (c) Consideration.--(1) The conveyance of real property 
     under this section shall, at the election of the Secretary, 
     be for no consideration or for consideration in an amount 
     determined by the Secretary to be appropriate under the 
     circumstances.
       (2) If consideration is received under paragraph (1) for 
     property conveyed under subsection (a), the Secretary may use 
     the amounts received, to the extent provided in 
     appropriations Acts, to pay for--
       (A) the cost of a survey described in subsection (d) with 
     respect to such property;
       (B) the cost of carrying out any environmental assessment, 
     study, or analysis, and any remediation, that may be required 
     under Federal law, or is considered appropriate by the 
     Secretary, in connection with such property or the conveyance 
     of such property; and
       (C) any other costs incurred by the Secretary in conveying 
     such property.
       (d) Description of Property.--The exact acreage and legal 
     description of any real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with a conveyance of real property under this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       (f) Definitions.--In this section:
       (1) The term ``Indian tribe'' has the meaning given such 
     term in section 102 of the Federally Recognized Indian Tribe 
     List Act of 1994 (Public Law 103-454; 108 Stat. 4791; 25 
     U.S.C. 479a).
       (2) The term ``Native Corporation'' has the meaning given 
     such term in section 3 of the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1602).

     SEC. 2822. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the City of Hopkinsville, 
     Kentucky (in this section referred to as the ``City''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property at Fort Campbell, Kentucky, 
     consisting of approximately 50 acres and containing an 
     abandoned railroad spur for the purpose of permitting the 
     City to use the property for storm water management, 
     recreation, transportation, and other public purposes.
       (b) Reimbursement of Transaction Costs.--(1) The City shall 
     reimburse the Secretary for any costs incurred by the 
     Secretary in carrying out the conveyance authorized by 
     subsection (a).
       (2) Any reimbursement for costs that is received under 
     paragraph (1) shall be credited to the fund or account 
     providing funds for such costs. Amounts so credited shall be 
     merged with amounts in such fund or account, and shall be 
     available for the same purposes, and subject to the same 
     conditions and limitations, as amounts in such fund or 
     account.
       (c) Description of Property.--The acreage of the real 
     property to be conveyed under subsection (a) has been 
     determined by the Secretary through a legal description 
     outlining such acreage. No further survey of the property is 
     required before conveyance under that subsection.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2823. MODIFICATION OF AUTHORITY FOR LAND TRANSFER AND 
                   CONVEYANCE, NAVAL SECURITY GROUP ACTIVITY, 
                   WINTER HARBOR, MAINE.

       (a) Modification of Conveyance Authority for Corea and 
     Winter Harbor Properties.--Section 2845 of the Military 
     Construction Authorization Act for Fiscal Year 2002 (division 
     B of Public Law 107-107; 115 Stat. 1319) is amended--
       (1) by striking subsection (b) and inserting the following 
     new subsection (b):
       ``(b) Conveyance and Transfer of Corea and Winter Harbor 
     Properties Authorized.--(1) The Secretary of the Navy may 
     convey, without consideration, to the State of Maine, any 
     political subdivision of the State of Maine, or any tax-
     supported agency in the State of Maine, all right, title, and 
     interest of the United States in and to parcels of real 
     property, including any improvements thereon and 
     appurtenances thereto, comprising the former facilities of 
     the Naval Security Group Activity, Winter Harbor, Maine, as 
     follows:
       ``(A) The parcel consisting of approximately 50 acres known 
     as the Corea Operations Site.
       ``(B) Three parcels consisting of approximately 23 acres 
     and comprising family housing facilities.
       ``(2) The Secretary of the Navy may transfer to the 
     administrative jurisdiction of the Secretary of the Interior 
     a parcel of real property consisting of approximately 404 
     acres at the former Naval Security Group Activity, which is 
     the balance of the real property comprising the Corea 
     Operations Site.
       ``(3) The Secretary of the Interior shall administer the 
     property transferred under paragraph (2) as part of the 
     National Wildlife Refuge System.''; and
       (2) in subsections (c), (d), (e), (f), (g), and (h), by 
     striking ``subsection (b)'' each place it appears and 
     inserting ``subsection (b)(1)''.
       (b) Exemption of Modified Conveyances from Federal 
     Screening Requirement.--That section is further amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (2) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) Exemption of Certain Conveyances From Federal 
     Screening.--Any conveyance authorized by subsection (b)(1) of 
     this section, as amended by section 2823 of the National 
     Defense Authorization Act for Fiscal Year 2003, is exempt 
     from the requirement to screen the property concerned for 
     further Federal use pursuant to section 2696 of title 10, 
     United States Code.''.

     SEC. 2824. LAND CONVEYANCE, WESTOVER AIR RESERVE BASE, 
                   MASSACHUSETTS.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the City of Chicopee, 
     Massachusetts (in this section referred to as the ``City''), 
     all right, title, and interest of the United States in and to 
     a parcel of real property, including 133 housing units and 
     other improvements thereon, consisting of approximately 30.38 
     acres located at Westover Air Reserve Base in Chicopee, 
     Massachusetts, for the purpose of permitting the City to use 
     the property for economic development and other public 
     purposes.
       (b) Administrative Expenses.--(1) The Secretary may require 
     the City to reimburse the Secretary for the costs incurred by 
     the Secretary to carry out the conveyance under subsection 
     (a), including survey costs, costs related to environmental 
     documentation (other than the environmental baseline survey), 
     and other administrative costs related to the conveyance.
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amount received under this subsection.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2825. LAND CONVEYANCE, NAVAL STATION NEWPORT, RHODE 
                   ISLAND.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the State of Rhode Island, or any political 
     subdivision thereof, any or all right, title, and interest of 
     the United States in and to a parcel of real property, 
     together with improvements thereon, consisting of 
     approximately 34 acres located in Melville, Rhode Island, and 
     known as the Melville Marina site.
       (b) Consideration.--(1) As consideration for the conveyance 
     of real property under subsection (a), the conveyee shall pay 
     the United States an amount equal to the fair market value of 
     the real property, as determined by the Secretary based on an 
     appraisal of the real property acceptable to the Secretary.
       (2) Any consideration received under paragraph (1) shall be 
     deposited in the account established under section 204(h) of 
     the Federal Property and Administrative Services Act of 1949 
     (40 U.S.C. 485(h)), and shall be available as provided for in 
     that section.
       (c) Reimbursement of Transaction Costs.--(1) The Secretary 
     may require the conveyee of the real property under 
     subsection (a) to reimburse the Secretary for any costs 
     incurred by the Secretary in carrying out the conveyance.
       (2) Any reimbursement for costs that is received under 
     paragraph (1) shall be credited to the fund or account 
     providing funds for such costs. Amounts so credited shall be 
     merged with amounts in such fund or account, and shall be 
     available for the same purposes, and subject to the same 
     conditions and limitations, as amounts in such fund or 
     account.

[[Page H5534]]

       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2826. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO.

       (a) Exchange Authorized.--Subject to subsection (b), the 
     Secretary of the Air Force may convey to the State of 
     Colorado (in this section referred to as the ``State'') all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including improvements thereon, 
     consisting of all or part of the Watkins Communications Site 
     in Arapahoe County, Colorado.
       (b) Limitation.--The Secretary of the Air Force may carry 
     out the conveyance authorized by subsection (a) only with the 
     concurrence of the Secretary of Defense.
       (c) Consideration.--(1) As consideration for the conveyance 
     authorized by subsection (a) the State shall convey to the 
     United States of all right, title, and interest of the State 
     in and to a parcel of real property, including improvements 
     thereon, consisting of approximately 41 acres that is owned 
     by the State and is contiguous to Buckley Air Force Base, 
     Colorado.
       (2) The Secretary shall have jurisdiction over the real 
     property conveyed under paragraph (1).
       (3) Upon conveyance to the United States under paragraph 
     (1), the real property conveyed under that paragraph is 
     withdrawn from all forms of appropriation under the general 
     land laws, including the mining laws and mineral and 
     geothermal leasing laws.
       (d) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be conveyed 
     under this section shall be determined by surveys 
     satisfactory to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under authorized by this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2827. LAND ACQUISITION, BOUNDARY CHANNEL DRIVE SITE, 
                   ARLINGTON, VIRGINIA.

       (a) Acquisition Authorized.--The Secretary of Defense may, 
     using amounts authorized to be appropriated to be 
     appropriated by section 2401, acquire all right, title, and 
     interest in and to a parcel of real property, including any 
     improvements thereon, in Arlington County, Virginia, 
     consisting of approximately 7.2 acres and known as the 
     Boundary Channel Drive Site. The parcel is located southeast 
     of Interstate Route 395 at the end of Boundary Channel Drive 
     and was most recently occupied by the Twin Bridges Marriott.
       (b) Inclusion in Pentagon Reservation.--Upon its 
     acquisition under subsection (a), the parcel acquired under 
     that subsection shall be included in the Pentagon 
     Reservation, as that term is defined in section 2674(f)(1) of 
     title 10, United States Code.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be acquired under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (d) Terms and Conditions.--The Secretary may require such 
     terms and conditions in connection with the acquisition under 
     this section as the Secretary considers appropriate to 
     protect the interests of the United States.

     SEC. 2828. LAND CONVEYANCES, WENDOVER AIR FORCE BASE 
                   AUXILIARY FIELD, NEVADA.

       (a) Conveyances Authorized to West Wendover, Nevada.--(1) 
     The Secretary of the Interior may convey, without 
     consideration, to the City of West Wendover, Nevada, all 
     right, title, and interest of the United States in and to the 
     following:
       (A) The lands at Wendover Air Force Base Auxiliary Field, 
     Nevada, identified in Easement No. AFMC-HL-2-00-334 that are 
     determined by the Secretary of the Air Force to be no longer 
     required.
       (B) The lands at Wendover Air Force Base Auxiliary Field 
     identified for disposition on the map entitled ``West 
     Wendover, Nevada-Excess'', dated January 5, 2001, that are 
     determined by the Secretary of the Air Force to be no longer 
     required.
       (2) The purposes of the conveyances under this subsection 
     are--
       (A) to permit the establishment and maintenance of runway 
     protection zones; and
       (B) to provide for the development of an industrial park 
     and related infrastructure.
       (3) The map referred to in paragraph (1)(B) shall be on 
     file and available for public inspection in the offices of 
     the Director of the Bureau of Land Management and the Elko 
     District Office of the Bureau of Land Management.
       (b) Conveyance Authorized to Tooele County, Utah.--(1) The 
     Secretary of the Interior may convey, without consideration, 
     to Tooele County, Utah, all right, title, and interest of the 
     United States in and to the lands at Wendover Air Force Base 
     Auxiliary Field identified in Easement No. AFMC-HL-2-00-318 
     that are determined by the Secretary of the Air Force to be 
     no longer required.
       (2) The purpose of the conveyance under this subsection is 
     to permit the establishment and maintenance of runway 
     protection zones and an aircraft accident potential 
     protection zone as necessitated by continued military 
     aircraft operations at the Utah Test and Training Range.
       (c) Management of Conveyed Lands.--The lands conveyed under 
     subsections (a) and (b) shall be managed by the City of West 
     Wendover, Nevada, City of Wendover, Utah, Tooele County, 
     Utah, and Elko County, Nevada--
       (1) in accordance with the provisions of an Interlocal 
     Memorandum of Agreement entered into between the Cities of 
     West Wendover, Nevada, and Wendover, Utah, Tooele County, 
     Utah, and Elko County, Nevada, providing for the coordinated 
     management and development of the lands for the economic 
     benefit of both communities; and
       (2) in a manner that is consistent with such provisions of 
     the easements referred to subsections (a) and (b) that, as 
     jointly determined by the Secretary of the Air Force and 
     Secretary of the Interior, remain applicable and relevant to 
     the operation and management of the lands following 
     conveyance and are consistent with the provisions of this 
     section.
       (d) Additional Terms and Conditions.--The Secretary of the 
     Air Force and the Secretary of the Interior may jointly 
     require such additional terms and conditions in connection 
     with the conveyances required by subsections (a) and (b) as 
     the Secretaries consider appropriate to protect the interests 
     of the United States.

     SEC. 2829. LAND CONVEYANCE, FORT HOOD, TEXAS.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Veterans Land Board of 
     the State of Texas (in this section referred to as the 
     ``Board''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, consisting of approximately 174 acres 
     at Fort Hood, Texas, for the purpose of permitting the Board 
     to establish a State-run cemetery for veterans.
       (b) Reversionary Interest.--(1) If at the end of the five-
     year period beginning on the date of the conveyance 
     authorized by subsection (a), the Secretary determines that 
     the property conveyed under that subsection is not being used 
     for the purpose specified in that subsection, all right, 
     title, and interest in and to the property, including any 
     improvements thereon, shall revert to the United States, and 
     the United States shall have the right of immediate entry 
     thereon.
       (2) Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (c) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Board.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2830. LAND CONVEYANCES, ENGINEER PROVING GROUND, FORT 
                   BELVOIR, VIRGINIA.

       (a) Conveyance to Fairfax County, Virginia, Authorized.--
     (1) The Secretary of the Army may convey, without 
     consideration, to Fairfax County, Virginia, all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 135 acres, located in the northwest portion of 
     the Engineer Proving Ground (EPG) at Fort Belvoir, Virginia, 
     in order to permit the County to use such property for park 
     and recreational purposes.
       (2) The parcel of real property authorized to be conveyed 
     by paragraph (1) is generally described as that portion of 
     the Engineer Proving Ground located west of Accotink Creek, 
     east of the Fairfax County Parkway, and north of Cissna Road 
     to the northern boundary, but excludes a parcel of land 
     consisting of approximately 15 acres located in the southeast 
     corner of such portion of the Engineer Proving Ground.
       (3) The land excluded under paragraph (2) from the parcel 
     of real property authorized to be conveyed by paragraph (1) 
     shall be reserved for an access road to be constructed in the 
     future.
       (b) Conveyance of Balance of Property Authorized.--The 
     Secretary may convey to any competitively selected grantee 
     all right, title, and interest of the United States in and to 
     the real property, including any improvements thereon, at the 
     Engineering Proving Ground, not conveyed under the authority 
     in subsection (a).
       (c) Consideration.--(1) As consideration for the conveyance 
     authorized by subsection (b), the grantee shall provide the 
     United States, whether by cash payment, in-kind contribution, 
     or a combination thereof, an amount that is not less than the 
     fair market value, as determined by the Secretary, of the 
     property conveyed under that subsection.
       (2) In-kind consideration under paragraph (1) may include 
     the maintenance, improvement, alteration, repair, remodeling, 
     restoration (including environmental restoration), or 
     construction of facilities for the Department of the Army at 
     Fort Belvoir or at any other site or sites designated by the 
     Secretary.
       (3) If in-kind consideration under paragraph (1) includes 
     the construction of facilities, the grantee shall also convey 
     to the United States--
       (A) title to such facilities, free of all liens and other 
     encumbrances; and
       (B) if the United States does not have fee simple title to 
     the land underlying such facilities, convey to the United 
     States all right, title, and interest in and to such lands 
     not held by the United States.
       (4) The Secretary shall deposit any cash received as 
     consideration under this subsection in the special account 
     established pursuant to section 204(h) of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     485(h)).
       (d) Repeal of Superseded Authority.--Section 2821 of the 
     Military Construction Authorization Act for Fiscal Years 1990 
     and 1991 (division B of Public Law 101-189; 103 Stat. 1658), 
     as amended by section 2854 of the Military Construction 
     Authorization Act for Fiscal Year 1996

[[Page H5535]]

     (division B of Public Law 104-106; 110 Stat. 568), is 
     repealed.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsections (a) and (b) shall be determined by surveys 
     satisfactory to the Secretary. The cost of each such survey 
     shall be borne by the grantee.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under subsections (a) and (b) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.

     SEC. 2831. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, 
                   VIRGINIA.

       (a) Repeal of Commission on National Military Museum.--
     Title XXIX of the Military Construction Authorization Act for 
     Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 
     880; 10 U.S.C. 111 note) is repealed.
       (b) Modification of Authority for Transfer from Navy 
     Annex.--Section 2881 of the Military Construction 
     Authorization Act for Fiscal Year 2000 (113 Stat. 879) is 
     amended--
       (1) in subsection (b)(2), as amended by section 2863(f) of 
     the Military Construction Authorization Act for Fiscal Year 
     2002 (division B of Public Law 107-107; 115 Stat. 1332), by 
     striking ``as a site--'' and all that follows and inserting 
     ``as a site for such other memorials or museums that the 
     Secretary considers compatible with Arlington National 
     Cemetery and the Air Force Memorial.''; and
       (2) in subsection (d)--
       (A) in paragraph (2), by striking ``the recommendation (if 
     any) of the Commission on the National Military Museum to use 
     a portion of the Navy Annex property as the site for the 
     National Military Museum'', and inserting ``the use of the 
     acres reserved under (b)(2) as a memorial or museum''; and
       (B) in paragraph (4), by striking ``the date on which the 
     Commission on the National Military Museum submits to 
     Congress its report under section 2903'' and inserting ``the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 2003''.
       (c) Construction of Amendments.--The amendments made by 
     subsections (a) and (b) may not be construed to delay the 
     establishment of the United States Air Force Memorial 
     authorized by section 2863 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (115 Stat. 1330).

     SEC. 2832. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, 
                   KANSAS.

       (a) Conveyance Authorized.--The Secretary of the Army or 
     the Administrator of General Services may convey, without 
     consideration, to the Johnson County Park and Recreation 
     District, Kansas (in this section referred to as the 
     ``District''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, in the State of Kansas consisting of 
     approximately 2,000 acres, a portion of the Sunflower Army 
     Ammunition Plant. The purpose of the conveyance is to permit 
     the District to use the parcel for public recreational 
     purposes.
       (b) Description of Property.--The exact acreage, location, 
     and legal description of the real property to be conveyed 
     under subsection (a) shall be determined by a survey 
     satisfactory to the official making the conveyance. The cost 
     of such legal description, survey, or both shall be borne by 
     the District.
       (c) Additional Terms and Conditions.--The official making 
     the conveyance of real property under subsection (a) may 
     require such additional terms and conditions in connection 
     with the conveyance as that official considers appropriate to 
     protect the interests of the United States.
       (d) Effective Date.--This section shall take effect on 
     January 31, 2003.

     SEC. 2833. LAND CONVEYANCE, BLUEGRASS ARMY DEPOT, RICHMOND, 
                   KENTUCKY.

       (a) Conveyance Authorized.--(1) The Secretary of the Army 
     may convey, without consideration, to Madison County, 
     Kentucky (in this section referred to as the ``County''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     consisting of approximately 10 acres at the Bluegrass Army 
     Depot, Richmond, Kentucky, for the purpose of facilitating 
     the construction of a veterans' center on the parcel by the 
     State of Kentucky.
       (2) The Secretary may not make the conveyance authorized by 
     this subsection unless the Secretary determines that the 
     State of Kentucky has appropriated adequate funds for the 
     construction of the veterans' center.
       (b) Reversionary Interest.--If the Secretary determines 
     that the real property conveyed under subsection (a) ceases 
     to be utilized for the sole purpose of a veterans' center or 
     that reasonable progress is not demonstrated in constructing 
     the center and initiating services to veterans, all right, 
     title, and interest in and to the property shall revert to 
     the United States, and the United States shall have the right 
     of immediate entry onto the property. Any determination under 
     this subsection shall be made on the record after an 
     opportunity for a hearing.
       (c) Administrative Expenses.--The Secretary shall apply 
     section 2695 of title 10, United States Code, to the 
     conveyance authorized by subsection (a).
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the County.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                       Subtitle D--Other Matters

     SEC. 2841. TRANSFER OF FUNDS FOR ACQUISITION OF REPLACEMENT 
                   PROPERTY FOR NATIONAL WILDLIFE REFUGE SYSTEM 
                   LANDS IN NEVADA.

       (a) Transfer of Funds Authorized.--(1) The Secretary of the 
     Air Force may, using amounts authorized to be appropriated by 
     section 2304(a), transfer to the United States Fish and 
     Wildlife Service $15,000,000 to fulfill the obligations of 
     the Air Force under section 3011(b)(5)(F) of the Military 
     Lands Withdrawal Act of 1999 (title XXX of Public Law 106-65; 
     113 Stat. 889).
       (2) Upon receipt by the Service of the funds transferred 
     under paragraph (1), the obligations of the Air Force 
     referred to in that paragraph shall be considered fulfilled.
       (b) Contribution to Foundation.--(1) The United States Fish 
     and Wildlife Service may grant funds received by the Service 
     under subsection (a) in a lump sum to the National Fish and 
     Wildlife Foundation for use in accomplishing the purposes of 
     section 3011(b)(5)(F) of the Military Lands Withdrawal Act of 
     1999.
       (2) Funds received by the Foundation under paragraph (1) 
     shall be subject to the provisions of the National Fish and 
     Wildlife Foundation Establishment Act (16 U.S.C. 3701 et 
     seq.), other than section 10(a) of that Act (16 U.S.C. 
     3709(a)).

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for the activities 
     of the National Nuclear Security Administration in carrying 
     out programs necessary for national security in the amount of 
     $8,160,043,000, to be allocated as follows:
       (1) Weapons activities.--For weapons activities, 
     $5,988,188,000, to be allocated as follows:
       (A) For directed stockpile work, $1,218,967,000.
       (B) For campaigns, $2,090,528,000, to be allocated as 
     follows:
       (i) For operation and maintenance, $1,740,983,000.
       (ii) For construction, $349,545,000, to be allocated as 
     follows:

       Project 01-D-101, distributed information systems 
     laboratory, Sandia National Laboratories, Livermore, 
     California, $13,305,000.
       Project 00-D-103, terascale simulation facility, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $35,030,000.
       Project 00-D-107, joint computational engineering 
     laboratory, Sandia National Laboratories, Albuquerque, New 
     Mexico, $7,000,000.
       Project 98-D-125, tritium extraction facility, Savannah 
     River Plant, Aiken, South Carolina, $70,165,000.
       Project 96-D-111, national ignition facility (NIF), 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $224,045,000.

       (C) For readiness in technical base and facilities, 
     $1,735,129,000, to be allocated as follows:
       (i) For operation and maintenance, $1,464,783,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $270,346,000, to be allocated as follows:

       Project 03-D-101, Sandia underground reactor facility 
     (SURF), Sandia National Laboratory, Livermore, California, 
     $2,000,000.
       Project 03-D-103, project engineering and design (PED), 
     various locations, $17,839,000.
       Project 03-D-121, gas transfer capacity expansion, Kansas 
     City Plant, Kansas City, Missouri, $4,000,000.
       Project 03-D-122, purification prototype facility, Y-12 
     Plant, Oak Ridge, Tennessee, $20,800,000.
       Project 03-D-123, special nuclear material component 
     requalification facility, Pantex Plant, Amarillo, Texas, 
     $3,000,000
       Project 02-D-103, project engineering and design (PED), 
     various locations, $24,945,000.
       Project 02-D-105, engineering technology complex upgrade, 
     Lawrence Livermore National Laboratory, Livermore, 
     California, $10,000,000.
       Project 02-D-107, electrical power systems safety 
     communications and bus upgrades, Nevada Test Site, Nevada, 
     $7,500,000.
       Project 01-D-103, project engineering and design (PED), 
     various locations, $6,164,000.
       Project 01-D-107, Atlas relocation, Nevada Test Site, 
     Nevada, $4,123,000.
       Project 01-D-108, microsystems and engineering sciences 
     applications (MESA), Sandia National Laboratories, 
     Albuquerque, New Mexico, $75,000,000.
       Project 01-D-124, HEU storage facility, Y-12 Plant, Oak 
     Ridge, Tennessee, $25,000,000.
       Project 01-D-126, weapons evaluation test laboratory, 
     Pantex Plant, Amarillo, Texas, $8,650,000.
       Project 01-D-800, sensitive compartmented information 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $9,611,000.
       Project 99-D-103, isotope sciences facilities, Lawrence 
     Livermore National Laboratory, Livermore, California, 
     $4,011,000.
       Project 99-D-104, protection of real property (roof 
     reconstruction, phase II), Lawrence Livermore National 
     Laboratory, Livermore, California, $5,915,000.
       Project 99-D-127, stockpile management restructuring 
     initiative, Kansas City Plant, Kansas City, Missouri, 
     $29,900,000.
       Project 99-D-128, stockpile management restructuring 
     initiative, Pantex Plant, Amarillo, Texas, $407,000.

[[Page H5536]]

       Project 98-D-123, stockpile management restructuring 
     initiative, tritium facility modernization and consolidation, 
     Savannah River Plant, Aiken, South Carolina, $10,481,000.
       Project 96-D-102, stockpile stewardship facilities 
     revitalization, Phase VI, various locations, $1,000,000.

       (C) For secure transportation asset, $157,083,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $102,578,000.
       (ii) For program direction, $54,505,000.
       (D) For safeguards and security, $574,954,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $566,054,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $8,900,000, to be allocated as follows:

       Project 99-D-132, stockpile management restructuring 
     initiative, nuclear material safeguards and security upgrades 
     project, Los Alamos National Laboratory, Los Alamos, New 
     Mexico, $8,900,000.

       (E) For facilities and infrastructure, $242,512,000.
       (2) Defense nuclear nonproliferation.--For defense nuclear 
     nonproliferation activities, $1,129,130,000, to be allocated 
     as follows:
       (A) For operation and maintenance, $1,037,130,000, to be 
     allocated as follows:
       (i) For nonproliferation and verification research and 
     development, $298,907,000.
       (ii) For nonproliferation programs, $446,223,000.
       (iii) For fissile materials, $292,000,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $156,000,000, to be allocated as follows:
       Project 01-D-407, highly enriched uranium blend-down, 
     Savannah River Site, Aiken, South Carolina, $30,000,000.
       Project 99-D-141, pit disassembly and conversion facility, 
     Savannah River Site, Aiken, South Carolina, $33,000,000.
       Project 99-D-143, mixed oxide fuel fabrication facility, 
     Savannah River Site, Aiken, South Carolina, $93,000,000.
       (3) Naval reactors.--For naval reactors, $707,020,000, to 
     be allocated as follows:
       (A) For naval reactors development, $682,590,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $671,290,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $11,300,000, to be allocated as follows:

       Project 03-D-201, cleanroom technology facility, Bettis 
     Atomic Power Laboratory, West Mifflin, Pennsylvania, 
     $7,200,000.
       Project 01-D-200, major office replacement building, 
     Schenectady, New York, $2,100,000.
       Project 90-N-102, expended core facility dry cell project, 
     Naval Reactors Facility, Idaho, $2,000,000.

       (B) For program direction, $24,430,000.
       (4) Office of administrator for nuclear security.--For the 
     Office of the Administrator for Nuclear Security, and for 
     program direction for the National Nuclear Security 
     Administration (other than for naval reactors and secure 
     transportation asset), $335,705,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for environmental 
     management activities in carrying out programs necessary for 
     national security in the amount of $6,710,774,000, to be 
     allocated as follows:
       (1) Closure projects.--For closure projects carried out in 
     accordance with section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2836; 42 U.S.C. 7277n), $1,109,314,000.
       (2) Site/project completion.--For site completion and 
     project completion in carrying out environmental management 
     activities necessary for national security programs, 
     $793,950,000, to be allocated as follows:
       (A) For operation and maintenance, $779,706,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $14,244,000, to be allocated as follows:
       Project 02-D-402, Intec cathodic protection system 
     expansion, Idaho National Engineering and Environmental 
     Laboratory, Idaho Falls, Idaho, $1,119,000.
       Project 02-D-420, plutonium stabilization and packaging, 
     Savannah River Site, Aiken, South Carolina, $2,000,000.
       Project 01-D-414, project engineering and design (PED), 
     various locations, $5,125,000.
       Project 86-D-103, decontamination and waste treatment 
     facility, Lawrence Livermore National Laboratory, Livermore, 
     California, $6,000,000.
       (3) Post-2006 completion.--For post-2006 completion in 
     carrying out environmental restoration and waste management 
     activities necessary for national security programs, 
     $2,617,199,000, to be allocated as follows:
       (A) For operation and maintenance, $1,704,341,000.
       (B) For plant projects (including maintenance, restoration, 
     planning, construction, acquisition, modification of 
     facilities, and the continuation of projects authorized in 
     prior years, and land acquisition related thereto), 
     $14,870,000, to be allocated as follows:
       Project 93-D-187, high-level waste removal from filled 
     waste tanks, Savannah River Site, Aiken, South Carolina, 
     $14,870,000.
       (C) For the Office of River Protection in carrying out 
     environmental restoration and waste management activities 
     necessary for national security programs, $897,988,000, to be 
     allocated as follows:
       (i) For operation and maintenance, $226,256,000.
       (ii) For plant projects (including maintenance, 
     restoration, planning, construction, acquisition, 
     modification of facilities, and the continuation of projects 
     authorized in prior years, and land acquisition related 
     thereto), $671,732,000, to be allocated as follows:

       Project 03-D-403, immobilized high-level waste interim 
     storage facility, Richland, Washington, $6,363,000.
       Project 01-D-416, waste treatment and immobilization plant, 
     Richland, Washington, $619,000,000.
       Project 97-D-402, tank farm restoration and safe 
     operations, Richland, Washington, $25,424,000.
       Project 94-D-407, initial tank retrieval systems, Richland, 
     Washington, $20,945,000.

       (4) Science and technology development.--For science and 
     technology development in carrying out environmental 
     management activities necessary for national security 
     programs, $92,000,000.
       (5) Excess facilities.--For excess facilities in carrying 
     out environmental management activities necessary for 
     national security programs, $1,300,000.
       (6) Safeguards and security.--For safeguards and security 
     in carrying out environmental management activities necessary 
     for national security programs, $278,260,000.
       (7) Uranium enrichment decontamination and decommissioning 
     fund.--For contribution to the Uranium Enrichment 
     Decontamination and Decommissioning Fund under chapter 28 of 
     the Atomic Energy Act of 1954 (42 U.S.C. 2297g et seq.), 
     $441,000,000.
       (8) Environmental management cleanup reform.--For 
     accelerated environmental restoration and waste management 
     activities, $1,000,000,000.
       (9) Program direction.--For program direction in carrying 
     out environmental restoration and waste management activities 
     necessary for national security programs, $396,098,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $489,883,000, to be allocated as 
     follows:
       (1) Intelligence.--For intelligence, $43,559,000.
       (2) Counterintelligence.--For counterintelligence, 
     $48,083,000.
       (3) Office of security.--For the Office of Security for 
     security, $252,218,000, to be allocated as follows:
       (A) For nuclear safeguards and security, $156,102,000.
       (B) For security investigations, $45,870,000.
       (C) For program direction, $50,246,000.
       (4) Independent oversight and performance assurance.--For 
     independent oversight and performance assurance, $22,615,000.
       (5) Office of environment, safety, and health.--For the 
     Office of Environment, Safety, and Health, $104,910,000, to 
     be allocated as follows:
       (A) For environment, safety, and health (defense), 
     $86,892,000.
       (B) For program direction, $18,018,000.
       (6) Worker and community transition assistance.--For worker 
     and community transition assistance, $25,774,000, to be 
     allocated as follows:
       (A) For worker and community transition, $22,965,000.
       (B) For program direction, $2,809,000.
       (7) Office of hearings and appeals.--For the Office of 
     Hearings and Appeals, $3,136,000.

     SEC. 3104. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for privatization 
     initiatives in carrying out environmental restoration and 
     waste management activities necessary for national security 
     programs in the amount of $158,399,000, to be allocated as 
     follows:
       Project 98-PVT-2, spent nuclear fuel dry storage, Idaho 
     Falls, Idaho, $53,399,000.
       Project 97-PVT-2, advanced mixed waste treatment project, 
     Idaho Falls, Idaho, $105,000,000.

     SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2003 for payment to the 
     Nuclear Waste Fund established in section 302(c) of the 
     Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the 
     amount of $215,000,000.

                Subtitle B--Recurring General Provisions

     SEC. 3121. REPROGRAMMING.

       (a) In General.--Until the Secretary of Energy submits to 
     the congressional defense committees the report referred to 
     in subsection (b) and a period of 30 days has elapsed after 
     the date on which such committees receive the report, the 
     Secretary may not use amounts appropriated pursuant to this 
     title for any program--
       (1) in amounts that exceed, in a fiscal year--
       (A) 115 percent of the amount authorized for that program 
     by this title; or
       (B) $5,000,000 more than the amount authorized for that 
     program by this title; or
       (2) which has not been presented to, or requested of, 
     Congress.
       (b) Report.--(1) The report referred to in subsection (a) 
     is a report containing a full and complete statement of the 
     action proposed to be taken and the facts and circumstances 
     relied upon in support of the proposed action.

[[Page H5537]]

       (2) In the computation of the 30-day period under 
     subsection (a), there shall be excluded any day on which 
     either House of Congress is not in session because of an 
     adjournment of more than 3 days to a day certain.
       (c) Limitations.--(1) In no event may the total amount of 
     funds obligated pursuant to this title exceed the total 
     amount authorized to be appropriated by this title.
       (2) Funds appropriated pursuant to this title may not be 
     used for an item for which Congress has specifically denied 
     funds.

     SEC. 3122. LIMITS ON MINOR CONSTRUCTION PROJECTS.

       (a) Authority.--The Secretary of Energy may carry out any 
     minor construction project using operation and maintenance 
     funds, or facilities and infrastructure funds, authorized by 
     this title.
       (b) Annual Report.--The Secretary shall submit to the 
     congressional defense committees on an annual basis a report 
     on each exercise of the authority in subsection (a) during 
     the preceding year. Each report shall provide a brief 
     description of each minor construction project covered by the 
     report.
       (c) Cost Variation Reports to Congressional Committees.--
     If, at any time during the construction of any minor 
     construction project authorized by this title, the estimated 
     cost of the project is revised and the revised cost of the 
     project exceeds $5,000,000, the Secretary shall immediately 
     submit to the congressional defense committees a report 
     explaining the reasons for the cost variation.
       (d) Minor Construction Project Defined.--In this section, 
     the term ``minor construction project'' means any plant 
     project not specifically authorized by law if the approved 
     total estimated cost of the plant project does not exceed 
     $5,000,000.

     SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

       (a) In General.--(1) Except as provided in paragraph (2), 
     construction on a construction project may not be started or 
     additional obligations incurred in connection with the 
     project above the total estimated cost, whenever the current 
     estimated cost of the construction project, authorized by 
     section 3101, 3102, or 3103, or which is in support of 
     national security programs of the Department of Energy and 
     was authorized by any previous Act, exceeds by more than 25 
     percent the higher of--
       (A) the amount authorized for the project; or
       (B) the amount of the total estimated cost for the project 
     as shown in the most recent budget justification data 
     submitted to Congress.
       (2) An action described in paragraph (1) may be taken if--
       (A) the Secretary of Energy has submitted to the 
     congressional defense committees a report on the actions and 
     the circumstances making such action necessary; and
       (B) a period of 30 days has elapsed after the date on which 
     the report is received by the committees.
       (b) Exception.--Subsection (a) does not apply to a 
     construction project with a current estimated cost of less 
     than $5,000,000.

     SEC. 3124. FUND TRANSFER AUTHORITY.

       (a) Transfer to Other Federal Agencies.--The Secretary of 
     Energy may transfer funds authorized to be appropriated to 
     the Department of Energy pursuant to this title to other 
     Federal agencies for the performance of work for which the 
     funds were authorized. Funds so transferred may be merged 
     with and be available for the same purposes and for the same 
     time period as the authorizations of the Federal agency to 
     which the amounts are transferred.
       (b) Transfer Within Department of Energy.--(1) Subject to 
     paragraph (2), the Secretary of Energy may transfer funds 
     authorized to be appropriated to the Department of Energy 
     pursuant to this title between any such authorizations. 
     Amounts of authorizations so transferred may be merged with 
     and be available for the same purposes and for the same 
     period as the authorization to which the amounts are 
     transferred.
       (2) Not more than 5 percent of any such authorization may 
     be transferred between authorizations under paragraph (1). No 
     such authorization may be increased or decreased by more than 
     5 percent by a transfer under such paragraph.
       (c) Limitations.--The authority provided by this subsection 
     to transfer authorizations--
       (1) may be used only to provide funds for items relating to 
     activities necessary for national security programs that have 
     a higher priority than the items from which the funds are 
     transferred; and
       (2) may not be used to provide funds for an item for which 
     Congress has specifically denied funds.
       (d) Notice to Congress.--The Secretary of Energy shall 
     promptly notify the Committees on Armed Services of the 
     Senate and House of Representatives of any transfer of funds 
     to or from authorizations under this title.

     SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

       (a) Requirement of Conceptual Design.--(1) Subject to 
     paragraph (2) and except as provided in paragraph (3), before 
     submitting to Congress a request for funds for a construction 
     project that is in support of a national security program of 
     the Department of Energy, the Secretary of Energy shall 
     complete a conceptual design for that project.
       (2) If the estimated cost of completing a conceptual design 
     for a construction project exceeds $3,000,000, the Secretary 
     shall submit to Congress a request for funds for the 
     conceptual design before submitting a request for funds for 
     the construction project.
       (3) The requirement in paragraph (1) does not apply to a 
     request for funds--
       (A) for a minor construction project the total estimated 
     cost of which is less than $5,000,000; or
       (B) for emergency planning, design, and construction 
     activities under section 3126.
       (b) Authority for Construction Design.--(1) Within the 
     amounts authorized by this title, the Secretary of Energy may 
     carry out construction design (including architectural and 
     engineering services) in connection with any proposed 
     construction project if the total estimated cost for such 
     design does not exceed $600,000.
       (2) If the total estimated cost for construction design in 
     connection with any construction project exceeds $600,000, 
     funds for that design must be specifically authorized by law.

     SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
                   CONSTRUCTION ACTIVITIES.

       (a) Authority.--The Secretary of Energy may use any funds 
     available to the Department of Energy pursuant to an 
     authorization in this title, including funds authorized to be 
     appropriated for advance planning, engineering, and 
     construction design, and for plant projects, under sections 
     3101, 3102, 3103, and 3104 to perform planning, design, and 
     construction activities for any Department of Energy national 
     security program construction project that, as determined by 
     the Secretary, must proceed expeditiously in order to protect 
     public health and safety, to meet the needs of national 
     defense, or to protect property.
       (b) Limitation.--The Secretary may not exercise the 
     authority under subsection (a) in the case of any 
     construction project until the Secretary has submitted to the 
     congressional defense committees a report on the activities 
     that the Secretary intends to carry out under this section 
     and the circumstances making those activities necessary.
       (c) Specific Authority.--The requirement of section 
     3125(b)(2) does not apply to emergency planning, design, and 
     construction activities conducted under this section.

     SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
                   OF THE DEPARTMENT OF ENERGY.

       Subject to the provisions of appropriation Acts and section 
     3121, amounts appropriated pursuant to this title for 
     management and support activities and for general plant 
     projects are available for use, when necessary, in connection 
     with all national security programs of the Department of 
     Energy.

     SEC. 3128. AVAILABILITY OF FUNDS.

       (a) In General.--Except as provided in subsection (b), when 
     so specified in an appropriations Act, amounts appropriated 
     for operation and maintenance or for plant projects may 
     remain available until expended.
       (b) Exception for Program Direction Funds.--Amounts 
     appropriated for program direction pursuant to an 
     authorization of appropriations in subtitle A shall remain 
     available to be expended only until the end of fiscal year 
     2004.

     SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT 
                   FUNDS.

       (a) Transfer Authority for Defense Environmental Management 
     Funds.--The Secretary of Energy shall provide the manager of 
     each field office of the Department of Energy with the 
     authority to transfer defense environmental management funds 
     from a program or project under the jurisdiction of that 
     office to another such program or project.
       (b) Limitations.--(1) Not more than three transfers may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) The amount transferred to or from a program or project 
     in any one transfer under subsection (a) may not exceed 
     $5,000,000.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer is necessary--
       (A) to address a risk to health, safety, or the 
     environment; or
       (B) to assure the most efficient use of defense 
     environmental management funds at the field office.
       (4) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Assistant Secretary of Energy for Environmental Management, 
     shall notify Congress of any transfer of funds pursuant to 
     subsection (a) not later than 30 days after such transfer 
     occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A program referred to or a project listed in paragraph 
     (2) or (3) of section 3102.
       (B) A program or project not described in subparagraph (A) 
     that is for environmental restoration or waste management 
     activities necessary for national security programs of the 
     Department, that is being carried out by that office, and for 
     which defense environmental management funds have been 
     authorized and appropriated before the date of the enactment 
     of this Act.
       (2) The term ``defense environmental management funds'' 
     means funds appropriated to the Department of Energy pursuant 
     to an authorization for carrying out environmental 
     restoration and waste management activities necessary for 
     national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 2002, and ending on September 30, 2003.

[[Page H5538]]

     SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

       (a) Transfer Authority for Weapons Activities Funds.--The 
     Secretary of Energy shall provide the manager of each field 
     office of the Department of Energy with the authority to 
     transfer weapons activities funds from a program or project 
     under the jurisdiction of that office to another such program 
     or project.
       (b) Limitations.--(1) Not more than three transfers may be 
     made to or from any program or project under subsection (a) 
     in a fiscal year.
       (2) The amount transferred to or from a program or project 
     in any one transfer under subsection (a) may not exceed 
     $5,000,000.
       (3) A transfer may not be carried out by a manager of a 
     field office under subsection (a) unless the manager 
     determines that the transfer--
       (A) is necessary to address a risk to health, safety, or 
     the environment; or
       (B) will result in cost savings and efficiencies.
       (4) A transfer may not be carried out by a manager of a 
     field office under subsection (a) to cover a cost overrun or 
     scheduling delay for any program or project.
       (5) Funds transferred pursuant to subsection (a) may not be 
     used for an item for which Congress has specifically denied 
     funds or for a new program or project that has not been 
     authorized by Congress.
       (c) Exemption From Reprogramming Requirements.--The 
     requirements of section 3121 shall not apply to transfers of 
     funds pursuant to subsection (a).
       (d) Notification.--The Secretary, acting through the 
     Administrator for Nuclear Security, shall notify Congress of 
     any transfer of funds pursuant to subsection (a) not later 
     than 30 days after such transfer occurs.
       (e) Definitions.--In this section:
       (1) The term ``program or project'' means, with respect to 
     a field office of the Department of Energy, any of the 
     following:
       (A) A program referred to or a project listed in section 
     3101(1).
       (B) A program or project not described in subparagraph (A) 
     that is for weapons activities necessary for national 
     security programs of the Department, that is being carried 
     out by that office, and for which weapons activities funds 
     have been authorized and appropriated before the date of the 
     enactment of this Act.
       (2) The term ``weapons activities funds'' means funds 
     appropriated to the Department of Energy pursuant to an 
     authorization for carrying out weapons activities necessary 
     for national security programs.
       (f) Duration of Authority.--The managers of the field 
     offices of the Department may exercise the authority provided 
     under subsection (a) during the period beginning on October 
     1, 2002, and ending on September 30, 2003.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

     SEC. 3131. AVAILABILITY OF FUNDS FOR ENVIRONMENTAL MANAGEMENT 
                   CLEANUP REFORM.

       (a) Limitation on Availability for Environmental Management 
     Cleanup Reform.--None of the funds authorized to be 
     appropriated by section 3102(8) for the Department of Energy 
     for environmental management cleanup reform may be obligated 
     or expended until the Secretary of Energy--
       (1) publishes in the Federal Register, and submits to the 
     congressional defense committees, a report setting forth 
     criteria established by the Secretary--
       (A) for selecting the projects that will receive funding 
     using such funds; and
       (B) for setting priorities among the projects selected 
     under subparagraph (A); or
       (2) notifies the congressional defense committees that the 
     criteria described by paragraph (1) will not be established.
       (b) Requirements Regarding Establishment of Criteria.--
     Before establishing criteria, if any, under subsection 
     (a)(1), the Secretary shall publish a proposal for such 
     criteria in the Federal Register, and shall provide a period 
     of 45 days for public notice and comment on the proposal.
       (c) Availability of Funds if Criteria Are Not 
     Established.--(1) If the Secretary exercises the authority 
     under subsection (a)(2), the Secretary shall reallocate the 
     funds referred to in subsection (a) among sites that received 
     funds during fiscal year 2002 for defense environmental 
     restoration and waste management activities under section 
     3102 of the National Defense Authorization Act for Fiscal 
     Year 2002 (Public Law 107-197; 115 Stat. 1358).
       (2) The amount of funds referred to in subsection (a) that 
     are allocated under paragraph (1) to a site described in that 
     paragraph shall bear the same ratio to the amount of funds 
     referred to in subsection (a) as the amount of funds received 
     by such site during fiscal year 2002 under section 3102 of 
     the National Defense Authorization Act for Fiscal Year 2002 
     bears to the total amount of funds made available to all 
     sites during fiscal year 2002 under that section.
       (3) No funds allocated under paragraph (1) may be obligated 
     or expended until 30 days after the Secretary submits to the 
     congressional defense committee a list of the projects at 
     each site allocated funds under that paragraph, and the 
     amount of such funds to be provided to each such project at 
     each such site.
       (4) Funds referred to in subsection (a) may not be 
     obligated or expended for any site that was not funded in 
     fiscal year 2002 from amounts available to the Department of 
     Energy under title XXXI of the National Defense Authorization 
     Act for Fiscal Year 2002.

     SEC. 3132. ROBUST NUCLEAR EARTH PENETRATOR.

       Not later than February 3, 2003, the Secretary of Defense 
     shall, in consultation with the Secretary of Energy, submit 
     to the congressional defense committees a report on the 
     Robust Nuclear Earth Penetrator (RNEP). The report shall set 
     forth--
       (1) the military requirements for the Robust Nuclear Earth 
     Penetrator;
       (2) the nuclear weapons employment policy regarding the 
     Robust Nuclear Earth Penetrator;
       (3) a detailed description of the categories or types of 
     targets that the Robust Nuclear Earth Penetrator is designed 
     to hold at risk; and
       (4) an assessment of the ability of conventional weapons to 
     address the same categories and types of targets described 
     under paragraph (3).

     SEC. 3133. DATABASE TO TRACK NOTIFICATION AND RESOLUTION 
                   PHASES OF SIGNIFICANT FINDING INVESTIGATIONS.

       (a) Availability of Funds for Database.--Amounts authorized 
     to be appropriated by section 3101(1) for the National 
     Nuclear Security Administration for weapons activities shall 
     be available to the Deputy Administrator for Nuclear Security 
     for Defense Programs for the development and implementation 
     of a database for all national security laboratories to track 
     the notification and resolution phases of Significant Finding 
     Investigations (SFIs). The purpose of the database is to 
     facilitate the monitoring of the progress and accountability 
     of the national security laboratories in Significant Finding 
     Investigations.
       (b) Implementation Deadline.--The database required by 
     subsection (a) shall be implemented not later than September 
     30, 2003.
       (c) National Security Laboratory Defined.--In this section, 
     the term ``national security laboratory'' has the meaning 
     given that term in section 3281(1) of the National Nuclear 
     Security Administration Act (title XXXII of Public Law 106-
     65; 113 Stat. 968; 50 U.S.C. 2471(1)).

     SEC. 3134. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR 
                   MODIFIED NUCLEAR WEAPONS.

       (a) Requirement for Request for Funds for Development.--(1) 
     In any fiscal year after fiscal year 2002 in which the 
     Secretary of Energy plans to carry out activities described 
     in paragraph (2) relating to the development of a new nuclear 
     weapon or modified nuclear weapon, the Secretary shall 
     specifically request funds for such activities in the budget 
     of the President for that fiscal year under section 1105(a) 
     of title 31, United States Code.
       (2) The activities described in this paragraph are as 
     follows:
       (A) The conduct, or provision for conduct, of research and 
     development which could lead to the production of a new 
     nuclear weapon by the United States.
       (B) The conduct, or provision for conduct, of engineering 
     or manufacturing to carry out the production of a new nuclear 
     weapon by the United States.
       (C) The conduct, or provision for conduct, of research and 
     development which could lead to the production of a modified 
     nuclear weapon by the United States.
       (D) The conduct, or provision for conduct, of engineering 
     or manufacturing to carry out the production of a modified 
     nuclear weapon by the United States.
       (b) Budget Request Format.--The Secretary shall include in 
     a request for funds under subsection (a) the following:
       (1) In the case of funds for activities described in 
     subparagraph (A) or (C) of subsection (a)(2), a dedicated 
     line item for each such activity for a new nuclear weapon or 
     modified nuclear weapons that is in phase 1 or 2A or phase 
     6.1 or 6.2A, as the case may be, of the nuclear weapons 
     acquisition process.
       (2) In the case of funds for activities described in 
     subparagraph (B) or (D) of subsection (a)(2), a dedicated 
     line item for each such activity for a new nuclear weapon or 
     modified nuclear weapon that is in phase 3 or higher or phase 
     6.3 or higher, as the case may be, of the nuclear weapons 
     acquisition process.
       (c) Exception.--Subsections (a) shall not apply to funds 
     for purposes of conducting, or providing for the conduct of, 
     research and development, or manufacturing and engineering, 
     determined by the Secretary to be necessary--
       (1) for the nuclear weapons life extension program;
       (2) to modify an existing nuclear weapon solely to address 
     safety or reliability concerns; or
       (3) to address proliferation concerns.
       (d) Construction With Prohibition on Research and 
     Development on Low-Yield Nuclear Weapons.--Nothing in this 
     section may be construed to modify, repeal, or in any way 
     affect the provisions of section 3136 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1946; 42 U.S.C. 2121 note), relating to 
     prohibitions on research and development on low-yield nuclear 
     weapons.
       (e) Definitions.--In this section:
       (1) The term ``life extension program'' means the program 
     to repair or replace non-nuclear components, or to modify the 
     pit or canned subassembly, of nuclear weapons in the nuclear 
     weapons stockpile on the date of the enactment of this Act in 
     order to assure that such nuclear weapons retain the ability 
     to meet the military requirements applicable to such nuclear 
     weapons when first placed in the nuclear weapons stockpile.
       (2) The term ``modified nuclear weapon'' means a nuclear 
     weapon that contains a pit or canned subassembly, either of 
     which--
       (A) is in the nuclear weapons stockpile as of the date of 
     the enactment of this Act; and
       (B) is being modified in order to meet a military 
     requirement that is other than the military requirements 
     applicable to such nuclear weapon when first placed in the 
     nuclear weapons stockpile.

[[Page H5539]]

       (3) The term ``new nuclear weapon'' means a nuclear weapon 
     that contains a pit or canned subassembly, either of which is 
     neither--
       (A) in the nuclear weapons stockpile on the date of the 
     enactment of this Act; nor
       (B) in production as of that date.

     SEC. 3135. REQUIREMENT FOR AUTHORIZATION BY LAW FOR FUNDS 
                   OBLIGATED OR EXPENDED FOR DEPARTMENT OF ENERGY 
                   NATIONAL SECURITY ACTIVITIES.

       Section 660 of the Department of Energy Organization Act 
     (42 U.S.C. 7270) is amended--
       (1) by inserting ``(a)'' before ``Appropriations''; and
       (2) by adding at the end the following new subsection:
       ``(b)(1) No funds for the Department may be obligated or 
     expended for--
       ``(A) national security programs and activities of the 
     Department; or
       ``(B) activities under the Atomic Energy Act of 1954 (42 
     U.S.C. 2012 et seq.);
     unless funds therefor have been specifically authorized by 
     law.
       ``(2) Nothing in paragraph (1) may be construed to preclude 
     the requirement under subsection (a), or under any other 
     provision of law, for an authorization of appropriations for 
     programs and activities of the Department (other than 
     programs and activities covered by that paragraph) as a 
     condition to the obligation and expenditure of funds for 
     programs and activities of the Department (other than 
     programs and activities covered by that paragraph).''.

     SEC. 3136. LIMITATION ON AVAILABILITY OF FUNDS FOR PROGRAM TO 
                   ELIMINATE WEAPONS GRADE PLUTONIUM PRODUCTION IN 
                   RUSSIA.

       (a) Limitation.--Of the amounts authorized to be 
     appropriated by this title for the program to eliminate 
     weapons grade plutonium production, the Administrator for 
     Nuclear Security may not obligate or expend more than 
     $100,000,000 for that program until 30 days after the date on 
     which the Administrator submits to the congressional defense 
     committees a copy of an agreement entered into between the 
     United States Government and the Government of the Russian 
     Federation to shut down the three plutonium-producing 
     reactors in Russia.
       (b) Agreement Elements.--The agreement under subsection 
     (a)--
       (1) shall contain--
       (A) a commitment to shut down the three plutonium-producing 
     reactors;
       (B) the date on which each such reactor will be shut down;
       (C) a schedule and milestones for each such reactor to 
     complete the shut down of such reactor by the date specified 
     under subparagraph (B);
       (D) an arrangement for access to sites and facilities 
     necessary to meet such schedules and milestones; and
       (E) an arrangement for audit and examination procedures in 
     order to evaluate progress in meeting such schedules and 
     milestones; and
       (2) may include cost sharing arrangements.

                   Subtitle D--Proliferation Matters

     SEC. 3151. ADMINISTRATION OF PROGRAM TO ELIMINATE WEAPONS 
                   GRADE PLUTONIUM PRODUCTION IN RUSSIA.

       (a) Transfer of Program to Department of Energy.--The 
     program to eliminate weapons grade plutonium production in 
     Russia shall be transferred from the Department of Defense to 
     the Department of Energy.
       (b) Transfer of Associated Funds.--(1) Notwithstanding any 
     restriction or limitation in law on the availability of 
     Cooperative Threat Reduction funds specified in paragraph 
     (2), the Cooperative Threat Reduction funds specified in that 
     paragraph that are available for the program referred to in 
     subsection (a) shall be transferred from the Department of 
     Defense to the Department of Energy.
       (2) The Cooperative Threat Reduction funds specified in 
     this paragraph are the following:
       (A) Fiscal year 2002 Cooperative Threat Reduction funds, as 
     specified in section 1301(b) of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1254; 22 U.S.C. 5952 note).
       (B) Fiscal year 2001 Cooperative Threat Reduction funds, as 
     specified in section 1301(b) of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (as enacted 
     into law by Public Law 106-398; 114 Stat. 1654A-339).
       (C) Fiscal year 2000 Cooperative Threat Reduction funds, as 
     specified in section 1301(b) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 792; 22 U.S.C. 5952 note).
       (c) Availability of Transferred Funds.--(1) Notwithstanding 
     any restriction or limitation in law on the availability of 
     Cooperative Threat Reduction funds specified in subsection 
     (b)(2), the Cooperative Threat Reduction funds transferred 
     under subsection (b) for the program referred to in 
     subsection (a) shall be available for activities as follows:
       (A) To design and construct, refurbish, or both, fossil 
     fuel energy plants in Russia that provide alternative sources 
     of energy to the energy plants in Russia that produce weapons 
     grade plutonium.
       (B) To carry out limited safety upgrades of not more than 
     three energy plants in Russia that produce weapons grade 
     plutonium in order to permit the shutdown of such energy 
     plants and eliminate the production of weapons grade 
     plutonium in such energy plants.
       (2) Amounts available under paragraph (1) for activities 
     referred to in that paragraph shall remain available for such 
     activities until expended.

     SEC. 3152. REPEAL OF REQUIREMENT FOR REPORTS ON OBLIGATION OF 
                   FUNDS FOR PROGRAMS ON FISSILE MATERIALS IN 
                   RUSSIA.

       Section 3131 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 617; 22 
     U.S.C. 5952 note) is amended--
       (1) in subsection (a), by striking ``(a) Authority.--''; 
     and
       (2) by striking subsection (b).

     SEC. 3153. EXPANSION OF ANNUAL REPORTS ON STATUS OF NUCLEAR 
                   MATERIALS PROTECTION, CONTROL, AND ACCOUNTING 
                   PROGRAMS.

       (a) Covered Programs.--Subsection (a) of section 3171 of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
     114 Stat. 1654A-475) is amended by striking ``Russia that'' 
     and inserting ``countries where such materials''.
       (b) Report Contents.--Subsection (b) of that section is 
     amended--
       (1) in paragraph (1) by inserting ``in each country covered 
     by subsection (a)'' after ``locations,'';
       (2) in paragraph (2), by striking ``in Russia'' and 
     inserting ``in each such country'';
       (3) in paragraph (3), by inserting ``in each such country'' 
     after ``subsection (a)''; and
       (4) in paragraph (5), by striking ``by total amount and by 
     amount per fiscal year'' and inserting ``by total amount per 
     country and by amount per fiscal year per country''.

     SEC. 3154. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING 
                   NUCLEAR, RADIOLOGICAL, CHEMICAL, OR BIOLOGICAL 
                   WEAPONS.

       (a) Extension of Testing.--Section 1415 of the Defense 
     Against Weapons of Mass Destruction Act of 1996 (title XIV of 
     Public Law 104-201; 110 Stat. 2720; 50 U.S.C. 2315) is 
     amended--
       (1) in subsection (a)(2), by striking ``of five successive 
     fiscal years beginning with fiscal year 1997'' and inserting 
     ``of fiscal years 1997 through 2013''; and
       (2) in subsection (b)(2), by striking ``of five successive 
     fiscal years beginning with fiscal year 1997'' and inserting 
     ``of fiscal years 1997 through 2013''.
       (b) Construction of Extension With Designation of Attorney 
     General as Lead Official.--The amendment made by subsection 
     (a) may not be construed as modifying the designation of the 
     President entitled ``Designation of the Attorney General as 
     the Lead Official for the Emergency Response Assistance 
     Program Under Sections 1412 and 1415 of the National Defense 
     Authorization Act for Fiscal Year 1997'', dated April 6, 
     2000, designating the Attorney General to assume programmatic 
     and funding responsibilities for the Emergency Response 
     Assistance Program under sections 1412 and 1415 of the 
     Defense Against Weapons of Mass Destruction Act of 1996.

     SEC. 3155. PROGRAM ON RESEARCH AND TECHNOLOGY FOR PROTECTION 
                   FROM NUCLEAR OR RADIOLOGICAL TERRORISM.

       (a) Program Required.--(1) The Administrator for Nuclear 
     Security shall carry out a program on research and technology 
     for protection from nuclear or radiological terrorism, 
     including technology for the detection (particularly as 
     border crossings and ports of entry), identification, 
     assessment, control, disposition, consequence management, and 
     consequence mitigation of the dispersal of radiological 
     materials or of nuclear terrorism.
       (2) The Administrator shall carry out the program as part 
     of the support of the Administrator for homeland security and 
     counterterrorism within the National Nuclear Security 
     Administration
       (b) Program Elements.--In carrying out the program required 
     by subsection (a), the Administrator shall--
       (1) provide for the development of technologies to respond 
     to threats or incidents involving nuclear or radiological 
     terrorism in the United States;
       (2) demonstrate applications of the technologies developed 
     under paragraph (1), including joint demonstrations with the 
     Office of Homeland Security and other appropriate Federal 
     agencies;
       (3) provide, where feasible, for the development in 
     cooperation with the Russian Federation of technologies to 
     respond to nuclear or radiological terrorism in the former 
     states of the Soviet Union, including the demonstration of 
     technologies so developed;
       (4) provide, where feasible, assistance to other countries 
     on matters relating to nuclear or radiological terrorism, 
     including--
       (A) the provision of technology and assistance on means of 
     addressing nuclear or radiological incidents;
       (B) the provision of assistance in developing means for the 
     safe disposal of radioactive materials;
       (C) in coordination with the Nuclear Regulatory Commission, 
     the provision of assistance in developing the regulatory 
     framework for licensing and developing programs for the 
     protection and control of radioactive sources; and
       (D) the provision of assistance in evaluating the 
     radiological sources identified as not under current 
     accounting programs in the report of the Inspector General of 
     the Department of Energy entitled ``Accounting for Sealed 
     Sources of Nuclear Material Provided to Foreign Countries'', 
     and in identifying and controlling radiological sources that 
     represent significant risks; and
       (5) in coordination with the Office of Environment, Safety, 
     and Health of the Department of Energy, the Department of 
     Commerce, and the International Atomic Energy Agency, develop 
     consistent criteria for screening international transfers of 
     radiological materials.
       (c) Requirements for International Elements of Program.--
     (1) In carrying out activities in accordance with paragraphs 
     (3) and (4) of subsection (b), the Administrator shall 
     consult with--
       (A) the Secretary of Defense, Secretary of State, and 
     Secretary of Commerce; and
       (B) the International Atomic Energy Agency.

[[Page H5540]]

       (2) The Administrator shall encourage joint leadership 
     between the United States and the Russian Federation of 
     activities on the development of technologies under 
     subsection (b)(4).
       (d) Incorporation of Results in Emergency Response 
     Assistance Program.--To the maximum extent practicable, the 
     technologies and information developed under the program 
     required by subsection (a) shall be incorporated into the 
     program on responses to emergencies involving nuclear and 
     radiological weapons carried out under section 1415 of the 
     Defense Against Weapons of Mass Destruction Act of 1996 
     (title XIV of Public Law 104-201; 50 U.S.C. 2315).
       (e) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3101(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation and available for the development of 
     a new generation of radiation detectors for homeland defense, 
     up to $15,000,000 shall be available for carrying out this 
     section.

     SEC. 3156. EXPANSION OF INTERNATIONAL MATERIALS PROTECTION, 
                   CONTROL, AND ACCOUNTING PROGRAM.

       (a) Expansion of Program to Additional Countries 
     Authorized.--The Secretary of Energy may expand the 
     International Materials Protection, Control, and Accounting 
     (MPC&A) program of the Department of Energy to encompass 
     countries outside the Russian Federation and the independent 
     states of the former Soviet Union.
       (b) Notice to Congress of Use of Funds for Additional 
     Countries.--Not later than 30 days after the Secretary 
     obligates funds for the International Materials Protection, 
     Control, and Accounting program, as expanded under subsection 
     (a), for activities in or with respect to a country outside 
     the Russian Federation and the independent states of the 
     former Soviet Union, the Secretary shall submit to Congress a 
     notice of the obligation of such funds for such activities.
       (c) Assistance to Department of State for Nuclear Materials 
     Security Programs.--(1) As part of the International 
     Materials Protection, Control, and Accounting program, the 
     Secretary of Energy may provide technical assistance to the 
     Secretary of State in the efforts of the Secretary of State 
     to assist other nuclear weapons states to review and improve 
     their nuclear materials security programs.
       (2) The technical assistance provided under paragraph (1) 
     may include the sharing of technology or methodologies to the 
     states referred to in that paragraph. Any such sharing 
     shall--
       (A) be consistent with the treaty obligations of the United 
     States; and
       (B) take into account the sovereignty of the state 
     concerned and its weapons programs, as well the sensitivity 
     of any information involved regarding United States weapons 
     or weapons systems.
       (3) The Secretary of Energy may include the Russian 
     Federation in activities under paragraph (1) if the Secretary 
     determines that the experience of the Russian Federation 
     under the International Materials Protection, Control, and 
     Accounting program with the Russian Federation would make the 
     participation of the Russian Federation in such activities 
     useful in providing technical assistance under that 
     paragraph.
       (d) Plan for Accelerated Conversion or Return of Weapons-
     Usable Nuclear Materials.--(1) The Secretary shall develop a 
     plan to accelerate the conversion or return to the country of 
     origin of all weapons-usable nuclear materials located in 
     research reactors and other facilities outside the country of 
     origin.
       (2) The plan under paragraph (1) for nuclear materials of 
     origin in the Soviet Union shall be developed in consultation 
     with the Russian Federation.
       (3) As part of the plan under paragraph (1), the Secretary 
     shall identify the funding and schedules required to assist 
     the research reactors and facilities referred to in that 
     paragraph in upgrading their materials protection, control, 
     and accounting procedures until the weapons-usable nuclear 
     materials in such reactors and facilities are converted or 
     returned in accordance with that paragraph.
       (4) The provision of assistance under paragraph (3) shall 
     be closely coordinated with ongoing efforts of the 
     International Atomic Energy Agency for the same purpose.
       (e) Radiological Dispersal Device Materials Protection, 
     Control, and Accounting.--(1) The Secretary shall establish 
     within the International Materials Protection, Control, and 
     Accounting program a program on the protection, control, and 
     accounting of materials usable in radiological dispersal 
     devices.
       (2) The program under paragraph (1) shall include--
       (A) an identification of vulnerabilities regarding 
     radiological materials worldwide;
       (B) the mitigation of vulnerabilities so identified through 
     appropriate security enhancements; and
       (C) an acceleration of efforts to recover and control 
     diffused radiation sources and `orphaned'' radiological 
     sources that are of sufficient strength to represent a 
     significant risk.
       (3) The program under paragraph (1) shall be known as the 
     Radiological Dispersal Device Materials Protection, Control, 
     and Accounting program.
       (f) Study of Program To Secure Certain Radiological 
     Materials.--(1) The Secretary, acting through the 
     Administrator for Nuclear Security, shall require the Office 
     of International Materials Protection, Control, and 
     Accounting of the Department of Energy to conduct a study to 
     determine the feasibility and advisability of developing a 
     program to secure radiological materials outside the United 
     States that pose a threat to the national security of the 
     United States.
       (2) The study under paragraph (1) shall include the 
     following:
       (A) An identification of the categories of radiological 
     materials that are covered by that paragraph, including an 
     order of priority for securing each category of such 
     radiological materials.
       (B) An estimate of the number of sites at which such 
     radiological materials are present.
       (C) An assessment of the effort required to secure such 
     radiological materials at such sites, including--
       (i) a description of the security upgrades, if any, that 
     are required at such sites;
       (ii) an assessment of the costs of securing such 
     radiological materials at such sites;
       (iii) a description of any cost-sharing arrangements to 
     defray such costs;
       (iv) a description of any legal impediments to such effort, 
     including a description of means of overcoming such 
     impediments; and
       (v) a description of the coordination required for such 
     effort among appropriate United States Government entities 
     (including the Nuclear Regulatory Commission), participating 
     countries, and international bodies (including the 
     International Atomic Energy Agency).
       (D) A description of the pilot project undertaken in 
     Russia.
       (3) In identifying categories of radiological materials 
     under paragraph (2)(A), the Secretary shall take into account 
     matters relating to specific activity, half-life, radiation 
     type and energy, attainability, difficulty of handling, and 
     toxicity, and such other matters as the Secretary considers 
     appropriate.
       (4) Not later than one year after the date of the enactment 
     of this Act, the Secretary shall submit to Congress a report 
     on the study conducted under this subsection. The report 
     shall include the matters specified under paragraph (2) and 
     such other matters, including recommendations, as the 
     Secretary considers appropriate as a result of the study.
       (5) In this subsection, the term ``radiological material'' 
     means any radioactive material, other than plutonium (Pu) or 
     uranium enriched above 20 percent uranium-235.
       (g) Amendment of Convention on Physical Protection of 
     Nuclear Material.--(1) It is the sense of Congress that the 
     President should encourage amendment of the Convention on the 
     Physical Protection of Nuclear Materials in order to provide 
     that the Convention shall--
       (A) apply to both the domestic and international use and 
     transport of nuclear materials;
       (B) incorporate fundamental practices for the physical 
     protection of such materials; and
       (C) address protection against sabotage involving nuclear 
     materials.
       (2) In this subsection, the term ``Convention on the 
     Physical Protection of Nuclear Materials'' means the 
     Convention on the Physical Protection of Nuclear Materials, 
     With Annex, done at Vienna on October 26, 1979.
       (h) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $5,000,000 shall be available 
     for carrying out this section.

     SEC. 3157. ACCELERATED DISPOSITION OF HIGHLY ENRICHED URANIUM 
                   AND PLUTONIUM.

       (a) Sense of Congress on Program To Secure Stockpiles of 
     Highly Enriched Uranium and Plutonium.--(1) It is the sense 
     of Congress that the Secretary of Energy, in consultation 
     with the Secretary of State and Secretary of Defense, should 
     develop a comprehensive program of activities to encourage 
     all countries with nuclear materials to adhere to, or to 
     adopt standards equivalent to, the International Atomic 
     Energy Agency standard on The Physical Protection of Nuclear 
     Material and Nuclear Facilities (INFCIRC/225/Rev.4), relating 
     to the security of stockpiles of highly enriched uranium 
     (HEU) and plutonium (Pu).
       (2) To the maximum extent practicable, the program should 
     be developed in consultation with the Russian Federation, 
     other Group of 8 countries, and other allies of the United 
     States.
       (3) Activities under the program should include specific, 
     targeted incentives intended to encourage countries that 
     cannot undertake the expense of conforming to the standard 
     referred to in paragraph (1) to relinquish their highly 
     enriched uranium (HEU) or plutonium (Pu), including 
     incentives in which a country, group of countries, or 
     international body--
       (A) purchase such materials and provide for their security 
     (including by removal to another location);
       (B) undertake the costs of decommissioning facilities that 
     house such materials;
       (C) in the case of research reactors, convert such reactors 
     to low-enriched uranium reactors; or
       (D) upgrade the security of facilities that house such 
     materials in order to meet stringent security standards that 
     are established for purposes of the program based upon agreed 
     best practices.
       (b) Program on Accelerated Disposition of HEU Authorized.--
     (1) The Secretary of Energy may carry out a program to pursue 
     with the Russian Federation, and any other nation that 
     possesses highly enriched uranium, options for blending such 
     uranium so that the concentration of U-235 in such uranium is 
     below 20 percent.
       (2) The options pursued under paragraph (1) shall include 
     expansion of the Material Consolidation and Conversion 
     program of the Department of Energy to include--
       (A) additional facilities for the blending of highly 
     enriched uranium; and
       (B) additional centralized secure storage facilities for 
     highly enriched uranium designated for blending.
       (c) Incentives Regarding Highly Enriched Uranium in 
     Russia.--As part of the options pursued under subsection (b) 
     with the Russian Federation, the Secretary may provide 
     financial

[[Page H5541]]

     and other incentives for the removal of all highly enriched 
     uranium from any particular facility in the Russian 
     Federation if the Secretary determines that such incentives 
     will facilitate the consolidation of highly enriched uranium 
     in the Russian Federation to the best-secured facilities.
       (d) Construction With HEU Disposition Agreement.--Nothing 
     in this section may be construed as terminating, modifying, 
     or otherwise effecting requirements for the disposition of 
     highly enriched uranium under the Agreement Between the 
     Government of the United States of America and the Government 
     of the Russian Federation Concerning the Disposition of 
     Highly Enriched Uranium Extracted from Nuclear Weapons, 
     signed at Washington on February 18, 1993.
       (e) Priority in Blending Activities.--In pursuing options 
     under this section, the Secretary shall give priority to the 
     blending of highly enriched uranium from weapons, though 
     highly enriched uranium from sources other than weapons may 
     also be blended.
       (f) Transfer of Highly Enriched Uranium and Plutonium to 
     United States.--(1) As part of the program under subsection 
     (b), the Secretary may, upon the request of any nation--
       (A) purchase highly enriched uranium or weapons grade 
     plutonium from the nation at a price determined by the 
     Secretary;
       (B) transport any uranium or plutonium so purchased to the 
     United States; and
       (C) store any uranium or plutonium so transported in the 
     United States.
       (2) The Secretary is not required to blend any highly 
     enriched uranium purchased under paragraph (1)(A) in order to 
     reduce the concentration of U-235 in such uranium to below 20 
     percent. Amounts authorized to be appropriated by subsection 
     (m) may not be used for purposes of blending such uranium.
       (g) Transfer of Highly Enriched Uranium to Russia.--(1) As 
     part of the program under subsection (b), the Secretary may 
     encourage nations with highly enriched uranium to transfer 
     such uranium to the Russian Federation for disposition under 
     this section.
       (2) The Secretary may pay any nation that transfers highly 
     enriched uranium to the Russian Federation under this 
     subsection an amount determined appropriate by the Secretary.
       (3) The Secretary may bear the cost of any blending and 
     storage of uranium transferred to the Russian Federation 
     under this subsection, including any costs of blending and 
     storage under a contract under subsection (h). Any site 
     selected for such storage shall have undergone complete 
     materials protection, control, and accounting upgrades before 
     the commencement of such storage.
       (h) Contracts for Blending and Storage of Highly Enriched 
     Uranium in Russia.--(1) As part of the program under 
     subsection (b), the Secretary may enter into one or more 
     contracts with the Russian Federation--
       (A) to blend in the Russian Federation highly enriched 
     uranium of the Russian Federation and highly enriched uranium 
     transferred to the Russian Federation under subsection (g); 
     or
       (B) to store in the Russian Federation highly enriched 
     uranium before blending or the blended material.
       (2) Any site selected for the storage of uranium or blended 
     material under paragraph (1)(B) shall have undergone complete 
     materials protection, control, and accounting upgrades before 
     the commencement of such storage.
       (i) Limitation on Release for Sale of Blended Uranium.--
     Uranium blended under this section may not be released for 
     sale until the earlier of--
       (1) January 1, 2014; or
       (2) the date on which the Secretary certifies that such 
     uranium can be absorbed into the global market without undue 
     disruption to the uranium mining industry in the United 
     States.
       (j) Proceeds of Sale of Uranium Blended by Russia.--Upon 
     the sale by the Russian Federation of uranium blended under 
     this section by the Russian Federation, the Secretary may 
     elect to receive from the proceeds of such sale an amount not 
     to exceed 75 percent of the costs incurred by the Department 
     of Energy under subsections (c), (g), and (h).
       (k) Report on Status of Program.--Not later than July 1, 
     2003, the Secretary shall submit to Congress a report on the 
     status of the program carried out under the authority in 
     subsection (b). The report shall include--
       (1) a description of international interest in the program;
       (2) schedules and operational details of the program; and
       (3) recommendations for future funding for the program.
       (l) Highly Enriched Uranium Defined.--In this section, the 
     term ``highly enriched uranium'' means uranium with a 
     concentration of U-235 of 20 percent or more.
       (m) Amount for Activities.--Of the amount to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $40,000,000 shall be 
     available for carrying out this section.

     SEC. 3158. DISPOSITION OF PLUTONIUM IN RUSSIA.

       (a) Negotiations With Russian Federation.--(1) The 
     Secretary of Energy is encouraged to continue to support the 
     Secretary of State in negotiations with the Ministry of 
     Atomic Energy of the Russian Federation to finalize the 
     plutonium disposition program of the Russian Federation (as 
     established under the agreement described in subsection (b)).
       (2) As part of the negotiations, the Secretary of Energy 
     may consider providing additional funds to the Ministry of 
     Atomic Energy in order to reach a successful agreement.
       (3) If such an agreement, meeting the requirements in 
     subsection (c), is reached with the Ministry of Atomic 
     Energy, which requires additional funds for the Russian work, 
     the Secretary shall either seek authority to use funds 
     available for another purpose, or request supplemental 
     appropriations, for such work.
       (b) Agreement.--The agreement referred to in subsection (a) 
     is the Agreement Between the Government of the United States 
     of America and the Government of the Russian Federation 
     Concerning the Management and Disposition of Plutonium 
     Designated As No Longer Required For Defense Purposes and 
     Related Cooperation, signed August 29, 2000, and September 1, 
     2000.
       (c) Requirement for Disposition Program.-- The plutonium 
     disposition program under subsection (a)--
       (1) shall include transparent verifiable steps;
       (2) shall proceed at a rate approximately equivalent to the 
     rate of the United States program for the disposition of 
     plutonium;
       (3) shall provide for cost-sharing among a variety of 
     countries;
       (4) shall provide for contributions by the Russian 
     Federation;
       (5) shall include steps over the near term to provide high 
     confidence that the schedules for the disposition of 
     plutonium of the Russian Federation will be achieved; and
       (6) may include research on more speculative long-term 
     options for the future disposition of the plutonium of the 
     Russian Federation in addition to the near-term steps under 
     paragraph (5).

     SEC. 3159. STRENGTHENED INTERNATIONAL SECURITY FOR NUCLEAR 
                   MATERIALS AND SAFETY AND SECURITY OF NUCLEAR 
                   OPERATIONS.

       (a) Report on Options for International Program To 
     Strengthen Security and Safety.--(1) Not later than 270 days 
     after the date of the enactment of this Act, the Secretary of 
     Energy shall submit to Congress a report on options for an 
     international program to develop strengthened security for 
     all nuclear materials and safety and security for current 
     nuclear operations.
       (2) The Secretary shall consult with the Office of Nuclear 
     Energy Science and Technology of the Department of Energy in 
     the development of options for purposes of the report.
       (3) In evaluating options for purposes of the report, the 
     Secretary shall consult with the Nuclear Regulatory 
     Commission and the International Atomic Energy Agency on the 
     feasibility and advisability of actions to reduce the risks 
     associated with terrorist attacks on nuclear power plants 
     outside the United States.
       (4) Each option for an international program under 
     paragraph (1) may provide that the program is jointly led by 
     the United States, the Russian Federation, and the 
     International Atomic Energy Agency.
       (5) The Secretary shall include with the report on options 
     for an international program under paragraph (1) a 
     description and assessment of various management alternatives 
     for the international program. If any option requires Federal 
     funding or legislation to implement, the report shall also 
     include recommendations for such funding or legislation, as 
     the case may be.
       (b) Joint Programs With Russia on Proliferation Resistant 
     Nuclear Energy Technologies.--The Director of the Office of 
     Nuclear Energy Science and Technology Energy shall, in 
     coordination with the Secretary, pursue with the Ministry of 
     Atomic Energy of the Russian Federation joint programs 
     between the United States and the Russian Federation on the 
     development of proliferation resistant nuclear energy 
     technologies, including advanced fuel cycles.
       (c) Participation of International Technical Experts.--In 
     developing options under subsection (a), the Secretary shall, 
     in consultation with the Nuclear Regulatory Commission, the 
     Russian Federation, and the International Atomic Energy 
     Agency, convene and consult with an appropriate group of 
     international technical experts on the development of various 
     options for technologies to provide strengthened security for 
     nuclear materials and safety and security for current nuclear 
     operations, including the implementation of such options.
       (d) Assistance Regarding Hostile Insiders and Aircraft 
     Impacts.--(1) The Secretary may, utilizing appropriate 
     expertise of the Department of Energy and the Nuclear 
     Regulatory Commission, provide assistance to nuclear 
     facilities abroad on the interdiction of hostile insiders at 
     such facilities in order to prevent incidents arising from 
     the disablement of the vital systems of such facilities.
       (2) The Secretary may carry out a joint program with the 
     Russian Federation and other countries to address and 
     mitigate concerns on the impact of aircraft with nuclear 
     facilities in such countries.
       (e) Assistance to IAEA in Strengthening International 
     Nuclear Safety and Security.--The Secretary may expand and 
     accelerate the programs of the Department of Energy to 
     support the International Atomic Energy Agency in 
     strengthening international nuclear safety and security.
       (f) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $35,000,000 shall be 
     available for carrying out this section as follows:
       (1) For activities under subsections (a) through (d), 
     $20,000,000, of which--
       (A) $5,000,000 shall be available for sabotage protection 
     for nuclear power plants and other nuclear facilities abroad; 
     and
       (B) $10,000,000 shall be available for development of 
     proliferation resistant nuclear energy technologies under 
     subsection (b).
       (2) For activities under subsection (e), $15,000,000.

     SEC. 3160. EXPORT CONTROL PROGRAMS.

       (a) Authority To Pursue Options for Strengthening Export 
     Control Programs.--

[[Page H5542]]

     The Secretary of Energy may pursue in the former Soviet Union 
     and other regions of concern, principally in South Asia, the 
     Middle East, and the Far East, options for accelerating 
     programs that assist countries in such regions in improving 
     their domestic export control programs for materials, 
     technologies, and expertise relevant to the construction or 
     use of a nuclear or radiological dispersal device.
       (b) Amount for Activities.--Of the amount authorized to be 
     appropriated by section 3102(2) for the Department of Energy 
     for the National Nuclear Security Administration for defense 
     nuclear nonproliferation, up to $5,000,000 shall be available 
     for carrying out this section.

     SEC. 3161. IMPROVEMENTS TO NUCLEAR MATERIALS PROTECTION, 
                   CONTROL, AND ACCOUNTING PROGRAM OF THE RUSSIAN 
                   FEDERATION.

       (a) Revised Focus for Program.--(1) The Secretary of Energy 
     shall work cooperatively with the Russian Federation to 
     update and improve the Joint Action Plan for the Materials 
     Protection, Control, and Accounting programs of the 
     Department and the Russian Federation Ministry of Atomic 
     Energy.
       (2) The updated plan shall shift the focus of the upgrades 
     of the nuclear materials protection, control, and accounting 
     program of the Russian Federation in order to assist the 
     Russian Federation in achieving, as soon as practicable but 
     not later than January 1, 2012, a sustainable nuclear 
     materials protection, control, and accounting system for the 
     nuclear materials of the Russian Federation that is supported 
     solely by the Russian Federation.
       (b) Pace of Program.--The Secretary shall work with the 
     Russian Federation, including applicable institutes in 
     Russia, to pursue acceleration of the nuclear materials 
     protection, control, and accounting programs at nuclear 
     defense facilities in the Russian Federation.
       (c) Transparency of Program.--The Secretary shall work with 
     the Russian Federation to identify various alternatives to 
     provide the United States adequate transparency in the 
     nuclear materials protection, control, and accounting program 
     of the Russian Federation to assure that such program is 
     meeting applicable goals for nuclear materials protection, 
     control, and accounting.
       (d) Sense of Congress.--In furtherance of the activities 
     required under this section, it is the sense of Congress the 
     Secretary should--
       (1) enhance the partnership with the Russian Ministry of 
     Atomic Energy in order to increase the pace and effectiveness 
     of nuclear materials accounting and security activities at 
     facilities in the Russian Federation, including serial 
     production enterprises; and
       (2) clearly identify the assistance required by the Russian 
     Federation, the contributions anticipated from the Russian 
     Federation, and the transparency milestones that can be used 
     to assess progress in meeting the requirements of this 
     section.

     SEC. 3162. COMPREHENSIVE ANNUAL REPORT TO CONGRESS ON 
                   COORDINATION AND INTEGRATION OF ALL UNITED 
                   STATES NONPROLIFERATION ACTIVITIES.

       Section 1205 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1247) is 
     amended by adding at the end the following new subsection:
       ``(d) Annual Report on Implementation of Plan.--(1) Not 
     later than January 31, 2003, and each year thereafter, the 
     President shall submit to Congress a report on the 
     implementation of the plan required by subsection (a) during 
     the preceding year.
       ``(2) Each report under paragraph (1) shall include--
       ``(A) a discussion of progress made during the year covered 
     by such report in the matters of the plan required by 
     subsection (a);
       ``(B) a discussion of consultations with foreign nations, 
     and in particular the Russian Federation, during such year on 
     joint programs to implement the plan;
       ``(C) a discussion of cooperation, coordination, and 
     integration during such year in the implementation of the 
     plan among the various departments and agencies of the United 
     States Government, as well as private entities that share 
     objectives similar to the objectives of the plan; and
       ``(D) any recommendations that the President considers 
     appropriate regarding modifications to law or regulations, or 
     to the administration or organization of any Federal 
     department or agency, in order to improve the effectiveness 
     of any programs carried out during such year in the 
     implementation of the plan.''.

     SEC. 3163. UTILIZATION OF DEPARTMENT OF ENERGY NATIONAL 
                   LABORATORIES AND SITES IN SUPPORT OF 
                   COUNTERTERRORISM AND HOMELAND SECURITY 
                   ACTIVITIES.

       (a) Agencies as Joint Sponsors of Laboratories for Work on 
     Activities.--Each department or agency of the Federal 
     Government, or of a State or local government, that carries 
     out work on counterterrorism and homeland security activities 
     at a Department of Energy national laboratory may be a joint 
     sponsor, under a multiple agency sponsorship arrangement with 
     the Department, of such laboratory in the performance of such 
     work.
       (b) Agencies as Joint Sponsors of Sites for Work on 
     Activities.--Each department or agency of the Federal 
     Government, or of a State or local government, that carries 
     out work on counterterrorism and homeland security activities 
     at a Department of Energy site may be a joint sponsor of such 
     site in the performance of such work as if such site were a 
     federally funded research and development center and such 
     work were performed under a multiple agency sponsorship 
     arrangement with the Department.
       (c) Primary Sponsorship.--The Department of Energy shall be 
     the primary sponsor under a multiple agency sponsorship 
     arrangement required under subsection (a) or (b).
       (d) Work.--(1) The Administrator for Nuclear Security shall 
     act as the lead agent in coordinating the formation and 
     performance of a joint sponsorship agreement between a 
     requesting agency and a Department of Energy national 
     laboratory or site for work on counterterrorism and homeland 
     security.
       (2) A request for work may not be submitted to a national 
     laboratory or site under this section unless approved in 
     advance by the Administrator.
       (3) Any work performed by a national laboratory or site 
     under this section shall comply with the policy on the use of 
     federally funded research and development centers under 
     section 35.017(a)(4) of the Federal Acquisition Regulation.
       (4) The Administrator shall ensure that the work of a 
     national laboratory or site requested under this section is 
     performed expeditiously and to the satisfaction of the head 
     of the department or agency submitting the request.
       (e) Funding.--(1) Subject to paragraph (2), a joint sponsor 
     of a Department of Energy national laboratory or site under 
     this section shall provide funds for work of such national 
     laboratory or site, as the case may be, under this section 
     under the same terms and conditions as apply to the primary 
     sponsor of such national laboratory under section 
     303(b)(1)(C) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253(b)(1)(C)) or of such site 
     to the extent such section applies to such site as a 
     federally funded research and development center by reason of 
     subsection (b).
       (2) The total amount of funds provided a national 
     laboratory or site in a fiscal year under this subsection by 
     joint sponsors other than the Department of Energy shall not 
     exceed an amount equal to 25 percent of the total funds 
     provided such national laboratory or site, as the case may 
     be, in such fiscal year from all sources.

                       Subtitle E--Other Matters

     SEC. 3171. INDEMNIFICATION OF DEPARTMENT OF ENERGY 
                   CONTRACTORS.

       Section 170d.(1)(A) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2210(d)(1)(A)) is amended by striking ``until August 
     1, 2002,'' and inserting ``until August 1, 2012''.

     SEC. 3172. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF 
                   ENERGY FACILITIES.

       The Atomic Energy Act of 1954 is amended by inserting after 
     section 234B (42 U.S.C. 2282b) the following:

     ``SEC. 234C. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF 
                   ENERGY NUCLEAR FACILITIES.

       ``(a) Persons Subject to Penalty.--
       ``(1) Civil penalty.--
       ``(A) In general.--A person (or any subcontractor or 
     supplier of the person) who has entered into an agreement of 
     indemnification under section 2210(d) (or any subcontractor 
     or supplier of the person) that violates (or is the employer 
     of a person that violates) Department of Energy Order No. 
     440.1A (1998), or any rule or regulation relating to 
     industrial or construction health and safety promulgated by 
     the Secretary of Energy (referred to in this section as the 
     ``Secretary'') after public notice and opportunity for 
     comment under section 553 of title 5, United States Code 
     (commonly known as the `Administrative Procedure Act'), shall 
     be subject to a civil penalty of not more than $100,000 for 
     each such violation.
       ``(B) Continuing violations.--If any violation under this 
     subsection is a continuing violation, each day of the 
     violation shall constitute a separate violation for the 
     purpose of computing the civil penalty under subparagraph 
     (A).
       ``(2) Regulations.--
       ``(A) In general.--Not later than 270 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations for industrial and construction health and safety 
     that incorporate the provisions and requirements contained in 
     Department of Energy Order No. 440.1A (1998).
       ``(B) Effective date.--The regulations promulgated under 
     subparagraph (A) shall take effect on the date that is 1 year 
     after the promulgation date of the regulations.
       ``(3) Variances or exemptions.--
       ``(A) In general.--The Secretary may provide in the 
     regulations promulgated under paragraph (2) a procedure for 
     granting variances or exemptions to the extent necessary to 
     avoid serious impairment of the national security of the 
     United States.
       ``(B) Determination.--In determining whether to provide a 
     variance or exemption under subparagraph (A), the Secretary 
     of Energy shall assess--
       ``(i) the impact on national security of not providing a 
     variance or exemption; and
       ``(ii) the benefits or detriments to worker health and 
     safety of providing a variance or exemption.
       ``(C) Procedure.--Before granting a variance or exemption, 
     the Secretary of Energy shall--
       ``(i) notify affected employees;
       ``(ii) provide an opportunity for a hearing on the record; 
     and
       ``(iii) notify Congress of any determination to grant a 
     variance at least 60 days before the proposed effective date 
     of the variance or exemption.
       ``(4) Applicability.--This subsection does not apply to any 
     facility that is a component of, or any activity conducted 
     under, the Naval Nuclear Propulsion Program.
       ``(5) Enforcement guidance on structures to be disposed 
     of.--
       ``(A) In general.--In enforcing the regulations under 
     paragraph (2), the Secretary of Energy shall, on a case-by-
     case basis, evaluate whether a building, facility, structure, 
     or improvement of the Department of Energy that is

[[Page H5543]]

     permanently closed and that is expected to be demolished, or 
     title to which is expected to be transferred to another 
     entity for reuse, should undergo major retrofitting to comply 
     with specific general industry standards.
       ``(B) No effect on health and safety enforcement.--This 
     subsection does not diminish or otherwise affect--
       ``(i) the enforcement of any worker health and safety 
     regulations under this section with respect to the 
     surveillance and maintenance or decontamination, 
     decommissioning, or demolition of buildings, facilities, 
     structures, or improvements; or
       ``(ii) the application of any other law (including 
     regulations), order, or contractual obligation.
       ``(b) Contract Penalties.--
       ``(1) In general.--The Secretary shall include in each 
     contract with a contractor of the Department provisions that 
     provide an appropriate reduction in the fees or amounts paid 
     to the contractor under the contract in the event of a 
     violation by the contractor or contractor employee of any 
     regulation or order relating to industrial or construction 
     health and safety.
       ``(2) Contents.--The provisions shall specify various 
     degrees of violations and the amount of the reduction 
     attributable to each degree of violation.
       ``(c) Powers and Limitations.--The powers and limitations 
     applicable to the assessment of civil penalties under section 
     234A, except for subsection (d) of that section, shall apply 
     to the assessment of civil penalties under this section.
       ``(d) Total Amount of Penalties.--In the case of an entity 
     described in subsection (d) of section 234A, the total amount 
     of civil penalties under subsection (a) or under subsection 
     (a) of section 234B in a fiscal year may not exceed the total 
     amount of fees paid by the Department of Energy to that 
     entity in that fiscal year.''.

     SEC. 3173. ONE-YEAR EXTENSION OF AUTHORITY OF DEPARTMENT OF 
                   ENERGY TO PAY VOLUNTARY SEPARATION INCENTIVE 
                   PAYMENTS.

       (a) In General.--Section 3161(a) of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 5 
     U.S.C. 5597 note) is amended by striking ``January 1, 2004'' 
     and inserting ``January 1, 2005''.
       (b) Construction.--The amendment made by subsection (a) may 
     be superseded by another provision of law that takes effect 
     after the date of the enactment of this Act, and before 
     January 1, 2004, establishing a uniform system for providing 
     voluntary separation incentives (including a system for 
     requiring approval of plans by the Office of Management and 
     Budget) for employees of the Federal Government.

     SEC. 3174. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF 
                   LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       (a) Support for Fiscal Year 2003.--From amounts authorized 
     to be appropriated to the Secretary of Energy by this title, 
     $6,900,000 shall be available for payment by the Secretary 
     for fiscal year 2003 to the Los Alamos National Laboratory 
     Foundation, a not-for-profit foundation chartered in 
     accordance with section 3167(a) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2052).
       (b) Use of Funds.--The foundation referred to in subsection 
     (a) shall--
       (1) utilize funds provided under this section as a 
     contribution to the endowment fund for the foundation; and
       (2) use the income generated from investments in the 
     endowment fund that are attributable to the payment made 
     under this section to fund programs to support the 
     educational needs of children in the public schools in the 
     vicinity of Los Alamos National Laboratory, New Mexico.
       (c) Repeal of Superseded Authority and Modification of 
     Authority To Extend Contract.--(1) Subsection (b) of section 
     3136 of the National Defense Authorization Act for Fiscal 
     Year 2002 (Public Law 107-107; 115 Stat. 1368) is amended to 
     read as follows:
       ``(b) Support for Fiscal Years 2003 through 2013.--Subject 
     to the availability of appropriations, the Secretary may 
     provide for a contract extension through fiscal year 2013 
     similar to the contract extension referred to in subsection 
     (a)(2).''.
       (2) The amendment made by paragraph (1) shall take effect 
     on October 1, 2002.

Subtitle F--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

     SEC. 3181. FINDINGS.

       Congress makes the following findings:
       (1) In September 2000, the United States and the Russian 
     Federation signed a Plutonium Management and Disposition 
     Agreement by which each agreed to dispose of 34 metric tons 
     of weapons-grade plutonium.
       (2) The agreement with Russia is a significant step toward 
     safeguarding nuclear materials and preventing their diversion 
     to rogue states and terrorists.
       (3) The Department of Energy plans to dispose of 34 metric 
     tons of weapons-grade plutonium in the United States before 
     the end of 2019 by converting the plutonium to a mixed-oxide 
     fuel to be used in commercial nuclear power reactors.
       (4) The Department has formulated a plan for implementing 
     the agreement with Russia through construction of a mixed-
     oxide fuel fabrication facility, the so-called MOX facility, 
     and a pit disassembly and conversion facility at the Savannah 
     River Site, Aiken, South Carolina.
       (5) The United States and the State of South Carolina have 
     a compelling interest in the safe, proper, and efficient 
     operation of the plutonium disposition facilities at the 
     Savannah River Site. The MOX facility will also be 
     economically beneficial to the State of South Carolina, and 
     that economic benefit will not be fully realized unless the 
     MOX facility is built.
       (6) The State of South Carolina desires to ensure that all 
     plutonium transferred to the State of South Carolina is 
     stored safely; that the full benefits of the MOX facility are 
     realized as soon as possible; and, specifically, that all 
     defense plutonium or defense plutonium materials transferred 
     to the Savannah River Site either be processed or be removed 
     expeditiously.

     SEC. 3182. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT 
                   SAVANNAH RIVER SITE.

       (a) Plan for Construction and Operation of MOX Facility.--
     (1) Not later than February 1, 2003, the Secretary of Energy 
     shall submit to Congress a plan for the construction and 
     operation of the MOX facility at the Savannah River Site, 
     Aiken, South Carolina.
       (2) The plan under paragraph (1) shall include--
       (A) a schedule for construction and operations so as to 
     achieve, as of January 1, 2009, and thereafter, the MOX 
     production objective, and to produce 1 metric ton of mixed 
     oxide fuel by December 31, 2009; and
       (B) a schedule of operations of the MOX facility designed 
     so that 34 metric tons of defense plutonium and defense 
     plutonium materials at the Savannah River Site will be 
     processed into mixed oxide fuel by January 1, 2019.
       (3)(A) Not later than February 15 each year, beginning in 
     2004 and continuing for as long as the MOX facility is in 
     use, the Secretary shall submit to Congress a report on the 
     implementation of the plan required by paragraph (1).
       (B) Each report under subparagraph (A) for years before 
     2010 shall include--
       (i) an assessment of compliance with the schedules included 
     with the plan under paragraph (2); and
       (ii) a certification by the Secretary whether or not the 
     MOX production objective can be met by January 2009.
       (C) Each report under subparagraph (A) for years after 2009 
     shall--
       (i) address whether the MOX production objective has been 
     met; and
       (ii) assess progress toward meeting the obligations of the 
     United States under the Plutonium Management and Disposition 
     Agreement.
       (D) For years after 2017, each report under subparagraph 
     (A) shall also include an assessment of compliance with the 
     MOX production objective and, if not in compliance, the plan 
     of the Secretary for achieving one of the following:
       (i) Compliance with such objective.
       (ii) Removal of all remaining defense plutonium and defense 
     plutonium materials from the State of South Carolina.
       (b) Corrective Actions.--(1) If a report under subsection 
     (a)(3) indicates that construction or operation of the MOX 
     facility is behind the applicable schedule under subsection 
     (a)(2) by 12 months or more, the Secretary shall submit to 
     Congress, not later than August 15 of the year in which such 
     report is submitted, a plan for corrective actions to be 
     implemented by the Secretary to ensure that the MOX facility 
     project is capable of meeting the MOX production objective by 
     January 1, 2009.
       (2) If a plan is submitted under paragraph (1) in any year 
     after 2008, the plan shall include corrective actions to be 
     implemented by the Secretary to ensure that the MOX 
     production objective is met.
       (3) Any plan for corrective actions under paragraph (1) or 
     (2) shall include established milestones under such plan for 
     achieving compliance with the MOX production objective.
       (4) If, before January 1, 2009, the Secretary determines 
     that there is a substantial and material risk that the MOX 
     production objective will not be achieved by 2009 because of 
     a failure to achieve milestones set forth in the most recent 
     corrective action plan under this subsection, the Secretary 
     shall suspend further transfers of defense plutonium and 
     defense plutonium materials to be processed by the MOX 
     facility until such risk is addressed and the Secretary 
     certifies that the MOX production objective can be met by 
     2009.
       (5) If, after January 1, 2009, the Secretary determines 
     that the MOX production objective has not been achieved 
     because of a failure to achieve milestones set forth in the 
     most recent corrective action plan under this subsection, the 
     Secretary shall suspend further transfers of defense 
     plutonium and defense plutonium materials to be processed by 
     the MOX facility until the Secretary certifies that the MOX 
     production objective can be met by 2009.
       (6)(A) Upon making a determination under paragraph (4) or 
     (5), the Secretary shall submit to Congress a report on the 
     options for removing from the State of South Carolina an 
     amount of defense plutonium or defense plutonium materials 
     equal to the amount of defense plutonium or defense plutonium 
     materials transferred to the State of South Carolina after 
     April 15, 2002.
       (B) Each report under subparagraph (A) shall include an 
     analysis of each option set forth in the report, including 
     the cost and schedule for implementation of such option, and 
     any requirements under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.) relating to consideration or 
     selection of such option.
       (C) Upon submittal of a report under paragraph (A), the 
     Secretary shall commence any analysis that may be required 
     under the National Environmental Policy Act of 1969 in order 
     to select among the options set forth in the report.
       (c) Contingent Requirement for Removal of Plutonium and 
     Materials From Savannah River Site.--If the MOX production 
     objective is not achieved as of January 1, 2009, the 
     Secretary shall, consistent with the National Environmental 
     Policy Act of 1969 and other applicable laws, remove from the 
     State of South Carolina, for storage or disposal elsewhere--
       (1) not later than January 1, 2011, not less than 1 metric 
     ton of defense plutonium or defense plutonium materials; and

[[Page H5544]]

       (2) not later than January 1, 2017, an amount of defense 
     plutonium or defense plutonium materials equal to the amount 
     of defense plutonium or defense plutonium materials 
     transferred to the Savannah River Site between April 15, 2002 
     and January 1, 2017, but not processed by the MOX facility.
       (d) Economic and Impact Assistance.--(1) If the MOX 
     production objective is not achieved as of January 1, 2011, 
     the Secretary shall pay to the State of South Carolina each 
     year beginning on or after that date through 2016 for 
     economic and impact assistance an amount equal to $1,000,000 
     per day until the later of--
       (A) the passage of 100 days in such year;
       (B) the MOX production objective is achieved in such year; 
     or
       (C) the Secretary has removed from the State of South 
     Carolina in such year at least 1 metric ton of defense 
     plutonium or defense plutonium materials.
       (2)(A) If the MOX production objective is not achieved as 
     of January 1, 2017, the Secretary shall pay to the State of 
     South Carolina each year beginning on or after that date 
     through 2024 for economic and impact assistance an amount 
     equal to $1,000,000 per day until the later of--
       (i) the passage of 100 days in such year;
       (ii) the MOX production objective is achieved in such year; 
     or
       (iii) the Secretary has removed from the State of South 
     Carolina an amount of defense plutonium or defense plutonium 
     materials equal to the amount of defense plutonium or defense 
     plutonium materials transferred to the Savannah River Site 
     between April 15, 2002 and January 1, 2017, but not processed 
     by the MOX facility.
       (B) Nothing in this paragraph may be construed to 
     terminate, supersede, or otherwise affect any other 
     requirements of this section.
       (3) The Secretary shall make payments, if any, under this 
     subsection, from amounts authorized to be appropriated to the 
     Department of Energy.
       (4) If the State of South Carolina obtains an injunction 
     that prohibits the Department from taking any action 
     necessary for the Department to meet any deadline specified 
     by this subsection, that deadline shall be extended for a 
     period of time equal to the period of time during which the 
     injunction is in effect.
       (e) Failure To Complete Planned Disposition Program.--If on 
     July 1 each year beginning in 2020 and continuing for as long 
     as the MOX facility is in use, less than 34 metric tons of 
     defense plutonium or defense plutonium materials have been 
     processed by the MOX facility, the Secretary shall submit to 
     Congress a plan for--
       (1) completing the processing of 34 metric tons of defense 
     plutonium and defense plutonium material by the MOX facility; 
     or
       (2) removing from the State of South Carolina an amount of 
     defense plutonium or defense plutonium materials equal to the 
     amount of defense plutonium or defense plutonium materials 
     transferred to the Savannah River Site after April 15, 2002, 
     but not processed by the MOX facility.
       (f) Removal of Mixed-Oxide Fuel Upon Completion of 
     Operations of MOX Facility.--If, one year after the date on 
     which operation of the MOX facility permanently ceases any 
     mixed-oxide fuel remains at the Savannah River Site, the 
     Secretary shall submit to Congress--
       (1) a report on when such fuel will be transferred for use 
     in commercial nuclear reactors; or
       (2) a plan for removing such fuel from the State of South 
     Carolina.
       (g) Definitions.--In this section:
       (1) MOX production objective.--The term ``MOX production 
     objective'' means production at the MOX facility of mixed-
     oxide fuel from defense plutonium and defense plutonium 
     materials at an average rate equivalent to not less than one 
     metric ton of mixed-oxide fuel per year. The average rate 
     shall be determined by measuring production at the MOX 
     facility from the date the facility is declared operational 
     to the Nuclear Regulatory Commission through the date of 
     assessment.
       (2) MOX facility.--The term ``MOX facility'' means the 
     mixed-oxide fuel fabrication facility at the Savannah River 
     Site, Aiken, South Carolina.
       (3) Defense plutonium; defense plutonium materials.--The 
     terms ``defense-plutonium'' and ``defense plutonium 
     materials'' mean weapons-usable plutonium.

     SEC. 3183. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND 
                   PLUTONIUM MATERIALS AT SAVANNAH RIVER SITE.

       (a) Study.--The Defense Nuclear Facilities Safety Board 
     shall conduct a study of the adequacy of K-Area Materials 
     Storage facility (KAMS), and related support facilities such 
     as Building 235-F, at the Savannah River Site, Aiken, South 
     Carolina, for the storage of defense plutonium and defense 
     plutonium materials in connection with the disposition 
     program provided in section 3182 and in connection with the 
     amended Record of Decision of the Department of Energy for 
     fissile materials disposition.
       (b) Report.--Not later than one year after the date of 
     enactment of this Act, the Defense Nuclear Facilities Safety 
     Board shall submit to Congress and the Secretary of Energy a 
     report on the study conducted under subsection (a).
       (c) Report Elements.--The report under subsection (b) 
     shall--
       (1) address--
       (A) the suitability of KAMS and related support facilities 
     for monitoring and observing any defense plutonium or defense 
     plutonium materials stored in KAMS;
       (B) the adequacy of the provisions made by the Department 
     for remote monitoring of such defense plutonium and defense 
     plutonium materials by way of sensors and for handling of 
     retrieval of such defense plutonium and defense plutonium 
     materials; and
       (C) the adequacy of KAMS should such defense plutonium and 
     defense plutonium materials continue to be stored at KAMS 
     after 2019; and
       (2) include such recommendations as the Defense Nuclear 
     Facilities Safety Board considers appropriate to enhance the 
     safety, reliability, and functionality of KAMS.
       (d) Reports on Actions on Recommendations.--Not later than 
     6 months after the date on which the report under subsection 
     (b) is submitted to Congress, and every year thereafter, the 
     Secretary and the Board shall each submit to Congress a 
     report on the actions taken by the Secretary in response to 
     the recommendations, if any, included in the report.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2003, $19,494,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).

     SEC. 3202. AUTHORIZATION OF APPROPRIATIONS FOR THE FORMERLY 
                   USED SITES REMEDIAL ACTION PROGRAM OF THE CORPS 
                   OF ENGINEERS.

       There is hereby authorized to be appropriated for fiscal 
     year 2003 for the Department of the Army, $140,000,000 for 
     the formerly used sites remedial action program of the Corps 
     of Engineers.
  House amendment to Senate amendment:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; FINDINGS.

       (a) Short Title.--This Act may be cited as the ``Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003''.
       (b) Findings.--Congress makes the following findings:
       (1) Representative Bob Stump of Arizona was elected to the 
     House of Representatives in 1976 for service in the 95th 
     Congress, after serving in the Arizona legislature for 18 
     years and serving as President of the Arizona State Senate 
     from 1975 to 1976, and he has been reelected to each 
     subsequent Congress.
       (2) A World War II combat veteran, Representative Stump 
     entered service in the United States Navy in 1943, just after 
     his 16th birthday, and served aboard the USS LUNGA POINT and 
     the USS TULAGI, which participated in the invasions of Luzon, 
     Iwo Jima, and Okinawa.
       (3) Representative Stump was elected to the Committee on 
     Armed Services in 1978 and has served on nearly all of its 
     subcommittees and panels during 25 years of distinguished 
     service on the committee. He has served as chairman of the 
     committee during the 107th Congress and has championed United 
     States national security as the paramount function of the 
     Federal Government.
       (4) Also serving on the Committee on Veterans' Affairs of 
     the House of Representatives, chairing that committee from 
     1995 to 2000, and serving on the Permanent Select Committee 
     on Intelligence of the House of Representatives, including 
     service as the ranking minority member in 1985 and 1986, 
     Representative Stump has dedicated his entire congressional 
     career to steadfastly supporting America's courageous men and 
     women in uniform both on and off the battlefield.
       (5) Representative Stump's tireless efforts on behalf of 
     those in the military and veterans have been recognized with 
     numerous awards for outstanding service from active duty and 
     reserve military, veterans' service, military retiree, and 
     industry organizations.
       (6) During his tenure as chairman of the Committee on Armed 
     Services of the House of Representatives, Representative 
     Stump has--
       (A) overseen the largest sustained increase to defense 
     spending since the Reagan administration;
       (B) led efforts to improve the quality of military life, 
     including passage of the largest military pay raise since 
     1982;
       (C) supported military retirees, including efforts to 
     reverse concurrent receipt law and to save the Armed Forces 
     Retirement Homes;
       (D) championed military readiness by defending military 
     access to critical training facilities such Vieques, Puerto 
     Rico, expanding the National Training Center at Ft. Irwin, 
     California, and working to restore balance between 
     environmental concerns and military readiness requirements;
       (E) reinvigorated efforts to defend America against 
     ballistic missiles by supporting an increase in fiscal year 
     2002 of nearly 50 percent above the fiscal year 2001 level 
     for missile defense programs; and
       (F) honored America's war heroes by expanding Arlington 
     National Cemetery, establishing a site for the Air Force 
     Memorial, and assuring construction of the World War II 
     Memorial.
       (7) In recognition of his long record of accomplishments in 
     enhancing the national security of the United States and his 
     legislative victories on behalf of active duty service 
     members, reservists, guardsmen, and veterans, it is 
     altogether fitting and proper that this Act be named in honor 
     of Representative Bob Stump of Arizona, as provided in 
     subsection (a).

     SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
                   CONTENTS.

       (a) Divisions.--This Act is organized into three divisions 
     as follows:

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       (1) Division A--Department of Defense Authorizations.
       (2) Division B--Military Construction Authorizations.
       (3) Division C--Department of Energy National Security 
     Authorizations and Other Authorizations.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical demilitarization program.
Sec. 107. Defense health programs.

                       Subtitle B--Navy Programs

Sec. 111. Shipbuilding initiative.
Sec. 112. Prohibition on acquisition of Champion-class, T-5 fuel 
              tankers.

                     Subtitle C--Air Force Programs

Sec. 121. Multiyear procurement authority for C-130J aircraft program.
Sec. 122. Reallocation of certain funds for Air Force Reserve Command 
              F-16 aircraft procurement.

                       Subtitle D--Other Programs

Sec. 141. Revisions to multiyear contracting authority.
Sec. 142. Transfer of technology items and equipment in support of 
              homeland security.
Sec. 143. Destruction of existing stockpile of lethal chemical agents 
              and munitions.
Sec. 144. Report on unmanned aerial vehicle systems.
Sec. 145. Report on impact of Army Aviation Modernization Plan on the 
              Army National Guard.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirement relating to management 
              responsibility for naval mine countermeasures programs.
Sec. 213. Extension of authority to carry out pilot program for 
              revitalizing the laboratories and test and evaluation 
              centers of the Department of Defense.
Sec. 214. Revised requirements for plan for Manufacturing Technology 
              Program.
Sec. 215. Technology Transition Initiative.
Sec. 216. Defense Acquisition Challenge Program.

                 Subtitle C--Ballistic Missile Defense

Sec. 231. Limitation on obligation of funds for procurement of Patriot 
              (PAC-3) missiles pending submission of required 
              certification.
Sec. 232. Responsibility of Missile Defense Agency for research, 
              development, test, and evaluation related to system 
              improvements of programs transferred to military 
              departments.
Sec. 233. Amendments to reflect change in name of Ballistic Missile 
              Defense Organization to Missile Defense Agency.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.

                  Subtitle B--Environmental Provisions

Sec. 311. Incidental taking of migratory birds during military 
              readiness activity.
Sec. 312. Military readiness and the conservation of protected species.
Sec. 313. Single point of contact for policy and budgeting issues 
              regarding unexploded ordnance, discarded military 
              munitions, and munitions constituents.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
              operating support to fisher houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
              of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
              recreation programs.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
              for conversion of commercial or industrial type functions 
              to contractor performance.
Sec. 332. Waiver authority regarding prohibition on contracts for 
              performance of security-guard functions.
Sec. 333. Exclusion of certain expenditures from percentage limitation 
              on contracting for performance of depot-level maintenance 
              and repair workloads.
Sec. 334. Repeal of obsolete provision regarding depot-level 
              maintenance and repair workloads that were performed at 
              closed or realigned military installations.
Sec. 335. Clarification of required core logistics capabilities.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 342. Availability of quarters allowance for unaccompanied defense 
              department teacher required to reside on overseas 
              military installation.
Sec. 343. Provision of summer school programs for students who attend 
              defense dependents' education system.

                   Subtitle F--Information Technology

Sec. 351. Authorized duration of base contract for Navy-Marine Corps 
              Intranet.
Sec. 352. Annual submission of information on national security and 
              information technology capital assets.
Sec. 353. Implementation of policy regarding certain commercial off-
              the-shelf information technology products.
Sec. 354. Installation and connection policy and procedures regarding 
              Defense Switch Network.

                       Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
              operation and maintenance budget subactivities.
Sec. 362. Minimum deduction from pay of certain members of the Armed 
              Forces to support Armed Forces Retirement Home.
Sec. 363. Condition on conversion of Defense Security Service to a 
              working capital funded entity.
Sec. 364. Continuation of Arsenal support program initiative.
Sec. 365. Training range sustainment plan, Global Status of Resources 
              and Training System, and training range inventory.
Sec. 366. Amendments to certain education and nutrition laws relating 
              to acquisition and improvement of military housing.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Authority for military department Secretaries to increase 
              active-duty end strengths by up to 1 percent.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
              numbers of general and flag officers in certain grades.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for reserves on active duty in support of the 
              Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitation on non-dual status technicians.

              Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

          Subtitle A--General Personnel Management Authorities

Sec. 501. Increase in number of Deputy Commandants of the Marine Corps.
Sec. 502. Extension of good-of-the-service waiver authority for 
              officers appointed to a Reserve Chief or Guard Director 
              position.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
              and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
              service.
Sec. 513. Matching funds requirements under National Guard Youth 
              Challenge Program.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Exemption from active status strength limitation for reserve 
              component general and flag officers serving on active 
              duty in certain joint duty assignments designated by the 
              Chairman of the Joint Chiefs of Staff.

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Sec. 522. Eligibility for consideration for promotion to grade of major 
              general for certain reserve component brigadier generals 
              who do not otherwise qualify for consideration for 
              promotion under the one-year rule.
Sec. 523. Retention of promotion eligibility for reserve component 
              general and flag officers transferred to an inactive 
              status.
Sec. 524. Authority for limited extension of medical deferment of 
              mandatory retirement or separation for reserve officers.

                   Subtitle D--Education and Training

Sec. 531. Authority for phased increase to 4,400 in authorized 
              strengths for the service academies.
Sec. 532. Enhancement of reserve component delayed training program.
Sec. 533. Preparation for, participation in, and conduct of athletic 
              competitions by the National Guard and members of the 
              National Guard.

                   Subtitle E--Decorations and Awards

Sec. 541. Waiver of time limitations for award of certain decorations 
              to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
              awarded for Operation Frequent Wind to Vietnam Service 
              Medal.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
              Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
              responsible for review and correction of military 
              records.
Sec. 553. Department of Defense support for persons participating in 
              military funeral honors details.
Sec. 554. Authority for use of volunteers as proctors for 
              administration of Armed Services Vocational Aptitude 
              Battery test.
Sec. 555. Annual report on status of female members of the Armed 
              Forces.

                          Subtitle G--Benefits

Sec. 561. Voluntary leave sharing program for members of the Armed 
              Forces.
Sec. 562. Enhanced flexibility in medical loan repayment program.
Sec. 563. Expansion of overseas tour extension benefits.
Sec. 564. Vehicle storage in lieu of transportation when member is 
              ordered to a nonforeign duty station outside continental 
              United States.

                  Subtitle H--Military Justice Matters

Sec. 571. Right of convicted accused to request sentencing by military 
              judge.
Sec. 572. Report on desirability and feasibility of consolidating 
              separate courses of basic instruction for judge 
              advocates.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Expansion of basic allowance for housing low-cost or no-cost 
              moves authority to members assigned to duty outside 
              United States.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Minimum levels of hardship duty pay for duty on the ground in 
              Antarctica or on Arctic icepack.
Sec. 616. Increase in maximum rates for prior service enlistment bonus.
Sec. 617. Retention incentives for health care providers qualified in a 
              critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Extension of leave travel deferral period for members 
              performing consecutive overseas tours of duty.

             Subtitle D--Retired Pay and Survivors Benefits

Sec. 641. Phase-in of full concurrent receipt of military retired pay 
              and veterans disability compensation for military 
              retirees with disabilities rated at 60 percent or higher.
Sec. 642. Change in service requirements for eligibility for retired 
              pay for non-regular service.
Sec. 643. Elimination of possible inversion in retired pay cost-of-
              living adjustment for initial COLA computation.
Sec. 644. Technical revisions to so-called ``forgotten widows'' annuity 
              program.

            Subtitle E--Reserve Component Montgomery GI Bill

Sec. 651. Extension of Montgomery GI Bill-Selected Reserve eligibility 
              period.

                       Subtitle F--Other Matters

Sec. 661. Addition of definition of continental United States in title 
              37.

                     TITLE VII--HEALTH CARE MATTERS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
              inpatient mental health care for medicare-eligible 
              beneficiaries.
Sec. 702. Expansion of TRICARE Prime Remote for certain dependents.
Sec. 703. Enabling dependents of certain members who died while on 
              active duty to enroll in the TRICARE dental program.
Sec. 704. Improvements regarding the Department of Defense Medicare-
              Eligible Retiree Health Care Fund.
Sec. 705. Certification of institutional and non-institutional 
              providers under the TRICARE program.
Sec. 706. Technical correction regarding transitional health care.

                          Subtitle B--Reports

Sec. 711. Comptroller General report on TRICARE claims processing.
Sec. 712. Comptroller General report on provision of care under the 
              TRICARE program.
Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

Sec. 721. Short title.
Sec. 722. Findings and sense of Congress concerning status of health 
              resources sharing between the Department of Veterans 
              Affairs and the Department of Defense.
Sec. 723. Revised coordination and sharing guidelines.
Sec. 724. Health care resources sharing and coordination project.
Sec. 725. Joint review of coordination and sharing of health care and 
              related services following domestic acts of terrorism or 
              domestic use of weapons of mass destruction.
Sec. 726. Adoption by Department of Veterans Affairs of Department of 
              Defense Pharmacy Data Transaction System.
Sec. 727. Joint pilot program for providing graduate medical education 
              and training for physicians.
Sec. 728. Repeal of certain limits on Department of Veterans Affairs 
              resources.
Sec. 729. Reports.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 801. Plan for acquisition management professional exchange pilot 
              program.
Sec. 802. Evaluation of training, knowledge, and resources regarding 
              negotiation of intellectual property arrangements.
Sec. 803. Limitation period for task and delivery order contracts.
Sec. 804. One-year extension of program applying simplified procedures 
              to certain commercial items; report.
Sec. 805. Authority to make inflation adjustments to simplified 
              acquisition threshold.
Sec. 806. Improvement of personnel management policies and procedures 
              applicable to the civilian acquisition workforce.
Sec. 807. Modification of scope of ball and roller bearings covered for 
              purposes of procurement limitation.
Sec. 808. Rapid acquisition and deployment procedures.
Sec. 809. Quick-reaction special projects acquisition team.
Sec. 810. Report on development of anti-cyberterrorism technology.
Sec. 811. Contracting with Federal Prison Industries.
Sec. 812. Renewal of certain procurement technical assistance 
              cooperative agreements at funding levels at least 
              sufficient to support existing programs.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Change in title of Secretary of the Navy to Secretary of the 
              Navy and Marine Corps.
Sec. 902. Report on implementation of United States Northern Command.
Sec. 903. National defense mission of Coast Guard to be included in 
              future Quadrennial Defense Reviews.
Sec. 904. Change in year for submission of Quadrennial Defense Review.
Sec. 905. Report on effect of noncombat operations on combat readiness 
              of the Armed Forces.

[[Page H5547]]

Sec. 906. Conforming amendment to reflect disestablishment of 
              Department of Defense Consequence Management Program 
              Integration Office.
Sec. 907. Authority to accept gifts for National Defense University.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
              2002.
Sec. 1003. Uniform standards throughout Department of Defense for 
              exposure of personnel to pecuniary liability for loss of 
              Government property.
Sec. 1004. Accountable officials in the Department of Defense.
Sec. 1005. Improvements in purchase card management.
Sec. 1006. Authority to transfer funds within a major acquisition 
              program from procurement to RDT&E.
Sec. 1007. Development and procurement of financial and nonfinancial 
              management systems.

                          Subtitle B--Reports

Sec. 1011. After-action reports on the conduct of military operations 
              conducted as part of Operation Enduring Freedom.
Sec. 1012. Report on biological weapons defense and counter-
              proliferation. 
Sec. 1013. Requirement that Department of Defense reports to Congress 
              be accompanied by electronic version.
Sec. 1014. Strategic force structure plan for nuclear weapons and 
              delivery systems.
Sec. 1015. Report on establishment of a joint national training complex 
              and joint opposing forces.
Sec. 1016. Repeal of various reports required of the Department of 
              Defense.
Sec. 1017. Report on the role of the Department of Defense in 
              supporting homeland security.
Sec. 1018. Study of short-term and long-term effects of nuclear earth 
              penetrator weapon.
Sec. 1019. Study of short-term and long-term effects of nuclear-tipped 
              ballistic missile interceptor.
Sec. 1021. Sense of Congress on maintenance of a reliable, flexible, 
              and robust strategic deterrent.

                       Subtitle C--Other Matters

Sec. 1021. Sense of Congress on maintenance of a reliable, flexible, 
              and robust strategic deterrent.
Sec. 1022. Time for transmittal of annual defense authorization 
              legislative proposal.
Sec. 1023. Technical and clerical amendments.
Sec. 1024. War risk insurance for vessels in support of NATO-approved 
              operations.
Sec. 1025. Conveyance, Navy drydock, Portland, Oregon.
Sec. 1026. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1027. Use for law enforcement purposes of DNA samples maintained 
              by Department of Defense for identification of human 
              remains.
Sec. 1028. Sense of Congress concerning aircraft carrier force 
              structure.
Sec. 1029. Enhanced authority to obtain foreign language services 
              during periods of emergency.
Sec. 1030. Surface combatant industrial base.
Sec. 1031. Enhanced cooperation between United States and Russian 
              Federation to promote mutual security.
Sec. 1032. Transfer of funds to increase amounts for PAC-3 missile 
              procurement and Israeli Arrow Program.
Sec. 1033. Assignment of members to assist Immigration and 
              Naturalization Service and Customs Service.
Sec. 1034. Sense of Congress on prohibition of use of funds for 
              International Criminal Court.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
              employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-
              sum severance payments.
Sec. 1103. Common occupational and health standards for differential 
              payments as a consequence of exposure to asbestos.
Sec. 1104. Continuation of Federal Employee Health Benefits program 
              eligibility.
Sec. 1105. Triennial full-scale Federal wage system wage surveys.
Sec. 1106. Certification for Department of Defense professional 
              accounting positions.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Support of United Nations-sponsored efforts to inspect and 
              monitor Iraqi weapons activities.
Sec. 1202. Strengthening the defense of Taiwan.
Sec. 1203. Administrative services and support for foreign liaison 
              officers.
Sec. 1204. Additional countries covered by loan guarantee program.
Sec. 1205. Limitation on funding for Joint Data Exchange Center in 
              Moscow.
Sec. 1206. Limitation on number of military personnel in Colombia.

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of 
              reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
              under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
              material storage facility.
Sec. 1306. Sense of Congress and report requirement regarding Russian 
              proliferation to Iran.
Sec. 1307. Prohibition against use of Cooperative Threat Reduction 
              funds outside the States of the former Soviet Union.
Sec. 1308. Limited waiver of restriction on use of funds.
Sec. 1309. Limitation on use of funds until submission of report on 
              defense and military contacts activities.

                TITLE XIV--UTAH TEST AND TRAINING RANGE

Sec. 1401. Definition of Utah Test and Training Range.
Sec. 1402. Military operations and overflights at Utah Test and 
              Training Range.
Sec. 1403. Designation and management of lands in Utah Test and 
              Training Range.
Sec. 1404. Designation of Pilot Range Wilderness.
Sec. 1405. Designation of Cedar Mountain Wilderness.

         TITLE XV--COST OF WAR AGAINST TERRORISM AUTHORIZATION

Sec. 1501. Short title.
Sec. 1502. Amounts authorized for the War on Terrorism.
Sec. 1503. Additional authorizations.

              Subtitle A--Authorization of Appropriations

              Part I--Authorizations to Transfer Accounts

Sec. 1511. War on Terrorism Operations Fund.
Sec. 1512. War on Terrorism Equipment Replacement and Enhancement Fund.
Sec. 1513. General provisions applicable to transfers.

             Part II--Authorizations to Specified Accounts

Sec. 1521. Army procurement.
Sec. 1522. Navy and Marine Corps procurement.
Sec. 1523. Air Force procurement.
Sec. 1524. Defense-wide activities procurement.
Sec. 1525. Research, development, test, and evaluation, defense-wide.
Sec. 1526. Classified activities.
Sec. 1527. Global Information Grid system.
Sec. 1528. Operation and maintenance.
Sec. 1529. Military personnel.

             Part III--Military Construction Authorizations

Sec. 1531. Authorized military construction and land acquisition 
              projects.

            Subtitle B--Wartime Pay and Allowance Increases

Sec. 1541. Increase in rate for family separation allowance.
Sec. 1542. Increase in rates for various hazardous duty incentive pays.
Sec. 1543. Increase in rate for diving duty special pay.
Sec. 1544. Increase in rate for imminent danger pay.
Sec. 1545. Increase in rate for career enlisted flyer incentive pay.
Sec. 1546. Increase in amount of death gratuity.
Sec. 1547. Effective date.

                   Subtitle C--Additional Provisions

Sec. 1551. Establishment of at least one Weapons of Mass Destruction 
              Civil Support Team in each State.
Sec. 1552. Authority for joint task forces to provide support to law 
              enforcement agencies conducting counter-terrorism 
              activities.
Sec. 1553. Sense of Congress on assistance to first responders.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title; definition.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
              2002 projects.

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                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
              2002 project.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 
              2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
              1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
              1997 project.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized guard and reserve construction and land 
              acquisition projects.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 
              projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
              projects.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Sec. 2801. Changes to alternative authority for acquisition and 
              improvement of military housing.
Sec. 2802. Modification of authority to carry out construction projects 
              as part of environmental response action.
Sec. 2803. Leasing of military family housing in Korea.
Sec. 2804. Pilot housing privatization authority for acquisition or 
              construction of military unaccompanied housing.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements with private entities to limit encroachments and 
              other constraints on military training, testing, and 
              operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
              conservation purposes.
Sec. 2813. National emergency exemption from screening and other 
              requirements of McKinney-Vento Homeless Assistance Act 
              for property used in support of response activities.
Sec. 2814. Demonstration program on reduction in long-term facility 
              maintenance costs.
Sec. 2815. Expanded authority to transfer property at military 
              installations to be closed to persons who construct or 
              provide military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Land conveyances, lands in Alaska no longer required for 
              National Guard purposes.
Sec. 2822. Land conveyance, Fort Campbell, Kentucky.
Sec. 2823. Land conveyance, Army Reserve Training Center, Buffalo, 
              Minnesota.
Sec. 2824. Land conveyance, Fort Bliss, Texas
Sec. 2825. Land conveyance, Fort Hood, Texas.
Sec. 2826. Land conveyance, Fort Monmouth, New Jersey.

                       Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
              Diego, California.
Sec. 2832. Boundary adjustments, Marine Corps Base, Quantico, and 
              Prince William Forest Park, Virginia.

                    Part III--Air Force Conveyances

Sec. 2841. Land conveyances, Wendover Air Force Base Auxiliary Field, 
              Nevada.

                       Subtitle D--Other Matters

Sec. 2861. Easement for construction of roads or highways, Marine Corps 
              Base, Camp Pendleton, California.
Sec. 2862. Sale of excess treated water and wastewater treatment 
              capacity, Marine Corps Base, Camp Lejeune, North 
              Carolina.
Sec. 2863. Ratification of agreement regarding Adak Naval Complex, 
              Alaska, and related land conveyances.
Sec. 2864. Special requirements for adding military installation to 
              closure list.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Environmental and other defense activities.

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3120. Short title; definitions.
Sec. 3121. Reprogramming.
Sec. 3122. Minor construction projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
              activities.
Sec. 3127. Funds available for all national security programs of the 
              Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfer of defense environmental management funds.
Sec. 3130. Transfer of weapons activities funds.
Sec. 3131. Scope of authority to carry out plant projects.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3141. One-year extension of panel to assess the reliability, 
              safety, and security of the United States nuclear 
              stockpile.
Sec. 3142. Transfer to National Nuclear Security Administration of 
              Department of Defense's Cooperative Threat Reduction 
              program relating to elimination of weapons grade 
              plutonium in Russia.
Sec. 3143. Repeal of requirement for reports on obligation of funds for 
              programs on fissile materials in Russia.
Sec. 3144. Annual certification to the President and Congress on the 
              condition of the United States nuclear weapons stockpile.
Sec. 3145. Plan for achieving one-year readiness posture for resumption 
              by the United States of underground nuclear weapons 
              tests.
Sec. 3146. Prohibition on development of low-yield nuclear weapons.

    Subtitle D--Matters Relating to Defense Environmental Management

Sec. 3151. Defense environmental management cleanup reform program.
Sec. 3152. Report on status of environmental management initiatives to 
              accelerate the reduction of environmental risks and 
              challenges posed by the legacy of the Cold War.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Financial assistance to States for preparation of 
              transferred obsolete ships for use as artificial reefs.
Sec. 3504. Independent analysis of title XI insurance guarantee 
              applications.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for procurement for the Army as follows:

[[Page H5549]]

       (1) For aircraft, $2,300,327,000.
       (2) For missiles, $1,693,896,000.
       (3) For weapons and tracked combat vehicles, 
     $2,372,958,000.
       (4) For ammunition, $1,320,026,000.
       (5) For other procurement, $6,119,447,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2003 for procurement for the Navy as follows:
       (1) For aircraft, $8,971,555,000.
       (2) For weapons, including missiles and torpedoes, 
     $1,916,617,000.
       (3) For shipbuilding and conversion, $9,279,494,000.
       (4) For other procurement, $4,527,763,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2003 for procurement for the 
     Marine Corps in the amount of $1,351,983,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2003 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $1,104,453,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for procurement for the Air Force as follows:
       (1) For aircraft, $12,522,755,000.
       (2) For missiles, $3,482,639,000.
       (3) For ammunition, $1,176,864,000.
       (4) For other procurement, $10,907,730,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for Defense-wide procurement in the amount of 
     $2,621,009,000.

     SEC. 105. DEFENSE INSPECTOR GENERAL.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for procurement for the Inspector General of the 
     Department of Defense in the amount of $2,000,000.

     SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

       There is hereby authorized to be appropriated for fiscal 
     year 2003 the amount of $1,490,199,000 for--
       (1) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (2) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.

     SEC. 107. DEFENSE HEALTH PROGRAMS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the Department of Defense for procurement for 
     carrying out health care programs, projects, and activities 
     of the Department of Defense in the total amount of 
     $278,742,000.

     SEC. 111. SHIPBUILDING INITIATIVE.

       (a) Use of Specified Shipbuilding Authorization Amount 
     Subject to Contractor Agreement.--Of the amounts authorized 
     to be appropriated by section 102(a)(3) for fiscal year 2003, 
     $810,000,000 shall be available for shipbuilding programs of 
     the Navy either in accordance with subsection (b) or in 
     accordance with subsection (c).
       (b) DDG-51 Authorization if Agreement Reached.--If as of 
     the date of the enactment of this Act the Secretary of the 
     Navy has submitted to Congress a certification described in 
     subsection (d), then the amount referred to in subsection (a) 
     shall be available for procurement of one Arleigh Burke class 
     (DDG-51) destroyer.
       (c) Authorization if Agreement Not Reached.--If as of the 
     date of the enactment of this Act the Secretary of the Navy 
     has not submitted to Congress a certification described in 
     subsection (d), then the amount referred to in subsection (a) 
     shall be available as follows:
       (1) $415,000,000 shall be available for advance procurement 
     for Virginia class submarines.
       (2) $210,000,000 shall be available for advance procurement 
     for cruiser conversion.
       (3) $185,000,000 shall be available for nuclear-powered 
     submarine (SSN) engineered refueling overhaul.
       (d) Certification.--A certification referred to in 
     subsections (b) and (c) is a certification by the Secretary 
     of the Navy that the prime contractor for the Virginia class 
     submarine program has entered into a binding agreement with 
     the United States to expend from its own funds an amount not 
     less than $385,000,000 for economic order quantity 
     procurement of nuclear and nonnuclear components for Virginia 
     class submarines beginning in fiscal year 2003.
       (e) Multiyear Procurement Authority.--(1) If the terms of 
     an agreement described in subsection (d) between the United 
     States and the prime contractor for the Virginia class 
     submarine program include a requirement for the Secretary of 
     the Navy to seek to acquire Virginia class submarines through 
     a multiyear procurement contract, the Secretary of the Navy 
     may, in accordance with section 2306b of title 10, United 
     States Code, enter into a multiyear contract for procurement 
     of Virginia class submarines, beginning with the fiscal year 
     2003 program year.
       (2)(A) In the case of a contract authorized by paragraph 
     (1), a certification under subsection (i)(1)(A) of section 
     2306b of title 10, United States Code, with respect to that 
     contract may only be submitted if the certification includes 
     an additional certification that each of the conditions 
     specified in subsection (a) of that section has been 
     satisfied with respect to that contract.
       (B) Upon transmission to Congress of a certification 
     referred to in subparagraph (A) with respect to a contract 
     authorized by paragraph (1), the contract may then be entered 
     into only after a period of 30 days has elapsed after the 
     date of the transmission of such certification.

     SEC. 112. PROHIBITION ON ACQUISITION OF CHAMPION-CLASS, T-5 
                   FUEL TANKERS.

       (a) Prohibition.--Except as provided in subsection (b), a 
     Champion-class fuel tanker, known as a T-5, which features a 
     double hull and reinforcement against ice damage, may not be 
     acquired for the Military Sealift Command or for other Navy 
     purposes.
       (b) Termination.--The prohibition in subsection (a) shall 
     not apply if the acquisition of a T-5 tanker is specifically 
     authorized in a defense authorization Act that--
       (1) is enacted after the date of the enactment of this Act;
       (2) specifically refers to subsection (a); and
       (3) specifically states that the prohibition in such 
     subsection does not apply.

                     Subtitle C--Air Force Programs

     SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR 
                   C-130J AIRCRAFT PROGRAM.

       (a) Multiyear Authority.--Beginning with the fiscal year 
     2003 program year, the Secretary of the Air Force may, in 
     accordance with section 2306b of title 10, United States 
     Code, enter into a multiyear contract for procurement of C-
     130J aircraft.
       (b) Limitation.--The Secretary of Defense may not enter 
     into a contract authorized by subsection (a) until--
       (1) the Secretary submits to the congressional defense 
     committees a certification described in subsection (c); and
       (2) a period of 30 days has expired after such 
     certification is submitted.
       (c) Required Certification as to Progress Toward Successful 
     Operational Test and Evaluation.--A certification under 
     subsection (b)(1) is a certification by the Secretary of 
     Defense that the C-130J program is making satisfactory 
     progress towards a successful operational test and 
     evaluation.
       (d) Required Certification With Respect to Multiyear 
     Contracting Conditions.--(1) In the case of a contract 
     authorized by subsection (a) of this section, a certification 
     under subsection (i)(1)(A) of section 2306b of title 10, 
     United States Code, with respect to that contract may only be 
     submitted if the certification includes an additional 
     certification that each of the conditions specified in 
     subsection (a) of that section has been satisfied with 
     respect to that contract.
       (2) Upon transmission to Congress of a certification 
     referred to in paragraph (1) with respect to a contract 
     authorized by subsection (a), the contract may then be 
     entered into only after a period of 30 days has elapsed after 
     the date of the transmission of such certification.

     SEC. 122. REALLOCATION OF CERTAIN FUNDS FOR AIR FORCE RESERVE 
                   COMMAND F-16 AIRCRAFT PROCUREMENT.

       Of the funds authorized to be appropriated by section 
     103(1) that are available for procurement of F-16 aircraft 
     for the Air Force Reserve Command, $14,400,000 shall be 
     available for 36 Litening II modernization upgrade kits for 
     the F-16 block 25 and block 30 aircraft (rather than for 
     Litening AT pods for such aircraft).

                       Subtitle D--Other Programs

     SEC. 141. REVISIONS TO MULTIYEAR CONTRACTING AUTHORITY.

       (a) Use of Procurement and Advance Procurement Funds.--
     Section 2306b(i) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4)(A) Unless otherwise authorized by law, the Secretary 
     of Defense may obligate funds for procurement of an end item 
     under a multiyear contract for the purchase of property only 
     for procurement of a complete and usable end item.
       ``(B) Unless otherwise authorized by law, the Secretary of 
     Defense may obligate funds appropriated for any fiscal year 
     for advance procurement under a multiyear contract for the 
     purchase of property only for the procurement of those long-
     lead items necessary in order to meet a planned delivery 
     schedule for complete major end items that are programmed 
     under the contract to be acquired with funds appropriated for 
     a subsequent fiscal year.''.
       (b) Effective Date.--Paragraph (4) of section 2306b(i) of 
     title 10, United States Code, as added by subsection (a), 
     shall not apply with respect to any multiyear contract 
     authorized by law before the date of the enactment of this 
     Act.

     SEC. 142. TRANSFER OF TECHNOLOGY ITEMS AND EQUIPMENT IN 
                   SUPPORT OF HOMELAND SECURITY.

       (a) In General.--Subchapter III of chapter 148 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2520. Transfer of technology items and equipment in 
       support of homeland security

       ``The Secretary of Defense shall enter into an agreement 
     with an independent, nonprofit, technology-oriented entity 
     that has demonstrated the ability to facilitate the transfer 
     of defense technologies, developed by both the private and 
     public sectors, to aid Federal, State, and local first 
     responders. Under the agreement the entity shall develop and 
     deploy technology items and equipment, through coordination 
     between Government agencies and private sector, commercial 
     developers and suppliers of technology, that will enhance 
     public safety and shall--
       ``(1) work in coordination with the InterAgency Board for 
     Equipment Standardization and Interoperability;

[[Page H5550]]

       ``(2) develop technology items and equipment that meet the 
     standardization requirements established by the Board;
       ``(3) evaluate technology items and equipment that have 
     been identified using the standards developed by the Board 
     and other state-of-the-art technology items and equipment 
     that may benefit first responders;
       ``(4) identify and coordinate among the public and private 
     sectors research efforts applicable to national security and 
     homeland security;
       ``(5) facilitate the timely transfer of technology items 
     and equipment between public and private sources;
       ``(6) eliminate redundant research efforts with respect to 
     technologies to be deployed to first responders;
       ``(7) expedite the advancement of high priority projects 
     from research through implementation of initial 
     manufacturing; and
       ``(8) establish an outreach program, in coordination with 
     the Board, with first responders to facilitate awareness of 
     available technology items and equipment to support crisis 
     response.''.
       (b) Deadline for Agreement.--The Secretary of Defense shall 
     enter into the agreement required by section 2520 of title 
     10, United States Code (as added by subsection (a)) not later 
     than January 15, 2003.
       (c) Strategic Plan.--The entity described in section 2520 
     of such title shall develop a strategic plan to carry out the 
     goals described in such section, which shall include 
     identification of--
       (1) the initial technology items and equipment considered 
     for development; and
       (2) the program schedule timelines for such technology 
     items and equipment.
       (d) Report Required.--Not later than March 15, 2003, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on--
       (1) the actions taken to carry out such section 2520;
       (2) the relationship of the entity described in such 
     section to the InterAgency Board for Equipment 
     Standardization and Interoperability; and
       (3) the strategic plan of such entity to meet the goals 
     described in such section.
       (e) Clerical Amendment.--The table of sections at the 
     beginning of subchapter III of chapter 148 of title 10, 
     United States Code, is amended by adding at the end the 
     following new item:

``2520. Transfer of technology items and equipment in support of 
              homeland security.''.

     SEC. 143. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL 
                   CHEMICAL AGENTS AND MUNITIONS.

       (a) Program Management.--The Secretary of Defense shall 
     ensure that the program for destruction of the United States 
     stockpile of lethal chemical agents and munitions is managed 
     as a major defense acquisition program (as defined in section 
     2430 of title 10, United States Code) in accordance with the 
     essential elements of such programs as may be determined by 
     the Secretary.
       (b) Requirement for Under Secretary of Defense 
     (Comptroller) Annual Certification.--Beginning with respect 
     to the budget request for fiscal year 2004, the Under 
     Secretary of Defense (Comptroller) shall submit to the 
     congressional defense committees on an annual basis a 
     certification that the budget request for the chemical agents 
     and munitions destruction program has been submitted in 
     accordance with the requirements of applicable Federal laws.

     SEC. 144. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS.

       (a) Report.--Not later than January 1, 2003, the Secretary 
     of Defense shall submit to Congress a report on unmanned 
     aerial vehicle systems of the Department of Defense.
       (b) Matters To Be Included Concerning Unmanned Aerial 
     Vehicle Systems.--The Secretary shall include in the report 
     under subsection (a) the following, shown for each system 
     referred to in that subsection:
       (1) A description of the infrastructure that the Department 
     of Defense has (or is planning) for the system.
       (2) A description of the operational requirements document 
     (ORD) for the system.
       (3) A description of the physical infrastructure of the 
     Department for training and basing.
       (4) A description of the manner in which the Department is 
     interfacing with the industrial base.
       (5) A description of the acquisition plan for the system.
       (c) Suggestions for Changes in Law.--The Secretary shall 
     also include in the report under subsection (a) such 
     suggestions as the Secretary considers appropriate for 
     changes in law that would facilitate the way the Department 
     acquires unmanned aerial vehicle systems.

     SEC. 145. REPORT ON IMPACT OF ARMY AVIATION MODERNIZATION 
                   PLAN ON THE ARMY NATIONAL GUARD.

       (a) Report by Chief of the National Guard Bureau.--Not 
     later than February 1, 2003, the Chief of the National Guard 
     Bureau shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     requirements for Army National Guard aviation. The report 
     shall include the following:
       (1) An analysis of the impact of the Army Aviation 
     Modernization Plan on the ability of the Army National Guard 
     to conduct its aviation missions.
       (2) The plan under that aviation modernization plan for the 
     transfer of aircraft from the active component of the Army to 
     the Army reserve components, including a timeline for those 
     transfers.
       (3) The progress, as of January 1, 2003, in carrying out 
     the transfers under the plan referred to in paragraph (2).
       (4) An evaluation of the suitability of existing Commercial 
     Off The Shelf (COTS) light-twin engine helicopters for 
     performance of Army National Guard aviation missions.
       (b) Views of the Chief of Staff of the Army.--If, before 
     the report under subsection (a) is submitted, the Chief of 
     the National Guard Bureau receives from the Chief of Staff of 
     the Army the views of the Chief of Staff on the matters to be 
     covered in the report, the Chief of the Bureau shall include 
     those views with the report as submitted under subsection 
     (a).

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $6,933,319,000.
       (2) For the Navy, $13,274,540,000.
       (3) For the Air Force, $18,803,184,000.
       (4) For Defense-wide activities, $17,413,291,000, of which 
     $222,054,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

       (a) Fiscal Year 2003.--Of the amounts authorized to be 
     appropriated by section 201, $10,023,658,000 shall be 
     available for the Defense Science and Technology Program, 
     including basic research, applied research, and advanced 
     technology development projects.
       (b) Basic Research, Applied Research, and Advanced 
     Technology Development Defined.--For purposes of this 
     section, the term ``basic research, applied research, and 
     advanced technology development'' means work funded in 
     program elements for defense research and development under 
     Department of Defense category 6.1, 6.2, or 6.3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. RAH-66 COMANCHE AIRCRAFT PROGRAM.

       (a) Limitation.--None of the funds authorized to be 
     appropriated for fiscal year 2003 for engineering and 
     manufacturing development for the RAH-66 Comanche aircraft 
     program may be obligated until the Secretary of the Army 
     submits to the congressional defense committees a report, 
     prepared in coordination with the Under Secretary of Defense 
     for Acquisition, Technology, and Logistics, containing an 
     accurate estimate of funds required to complete engineering 
     and manufacturing development for that aircraft and the new 
     time line and plan for bringing that aircraft to initial 
     operational capability, as called for in the joint 
     explanatory statement of the committee of conference on the 
     bill S. 1438 of the One Hundred Seventh Congress (at page 535 
     of House Report 107-333, submitted December 12, 2001).
       (b) Limitation on Total Cost of Engineering and 
     Manufacturing Development.--The total amount obligated or 
     expended for engineering and manufacturing development under 
     the RAH-66 Comanche aircraft program may not exceed 
     $6,000,000,000.
       (c) Adjustment of Limitation Amounts.--(1) Subject to 
     paragraph (2), the Secretary of the Army shall adjust the 
     amount of the limitation set forth in subsection (b) by the 
     following amounts:
       (A) The amounts of increases or decreases in costs 
     attributable to economic inflation after September 30, 2002.
       (B) The amounts of increases or decreases in costs 
     attributable to compliance with changes in Federal, State, or 
     local laws enacted after September 30, 2002.
       (2) Before making any adjustment under paragraph (1) in an 
     amount greater than $20,000,000, the Secretary of the Army 
     shall submit to the congressional defense committees notice 
     in writing of the proposed increase.
       (d) Annual DOD Inspector General Review.--(1) Not later 
     than March 1 of each year, the Department of Defense 
     Inspector General shall review the RAH-66 Comanche aircraft 
     program and submit to Congress a report on the results of the 
     review.
       (2) The report submitted on the program each year shall 
     include the following:
       (A) The extent to which engineering and manufacturing 
     development under the program is meeting the goals 
     established for engineering and manufacturing development 
     under the program, including the performance, cost, and 
     schedule goals.
       (B) The status of modifications expected to have a 
     significant effect on cost, schedule, or performance of RAH-
     66 aircraft.
       (C) The plan for engineering and manufacturing development 
     (leading to production) under the program for the fiscal year 
     that begins in the following year.
       (D) A conclusion regarding whether the plan referred to in 
     subparagraph (C) is consistent with the limitation in 
     subsection (a).
       (E) A conclusion regarding whether engineering and 
     manufacturing development (leading to production) under the 
     program is likely to be completed at a total cost not in 
     excess of the amount specified in subsection (a).

[[Page H5551]]

       (3) No report is required under this subsection after the 
     RAH-66 aircraft has completed engineering and manufacturing 
     development.
       (e) Limitation on Obligation of Funds.--Of the total amount 
     authorized to be appropriated for the RAH-66 Comanche 
     aircraft program for research, development, test, and 
     evaluation for a fiscal year, not more than 90 percent of 
     that amount may be obligated until the Department of Defense 
     Inspector General submits to Congress the report required to 
     be submitted in that fiscal year under subsection (d).

     SEC. 212. EXTENSION OF REQUIREMENT RELATING TO MANAGEMENT 
                   RESPONSIBILITY FOR NAVAL MINE COUNTERMEASURES 
                   PROGRAMS.

       Section 216(a) of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
     1317), as most recently amended by section 211 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 112 Stat. 1946), is amended by 
     striking ``through 2003'' and inserting ``through 2008''.

     SEC. 213. EXTENSION OF AUTHORITY TO CARRY OUT PILOT PROGRAM 
                   FOR REVITALIZING THE LABORATORIES AND TEST AND 
                   EVALUATION CENTERS OF THE DEPARTMENT OF 
                   DEFENSE.

       Section 246 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 1955; 10 U.S.C. 2358 note) is amended--
       (1) in subsection (a)(1), by inserting before the period at 
     the end the following: ``, and to demonstrate improved 
     efficiency in the performance of the research, development, 
     test, and evaluation functions of the Department of 
     Defense'';
       (2) in subsection (a)(4), by striking ``for a period'' and 
     all that follows through the period at the end and inserting 
     ``until March 1, 2008.'';
       (3) in subsection (b)(2), by striking ``Promptly after'' 
     and all that follows through ``The report shall contain'' and 
     inserting ``Not later than December 31 of each year, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the activities of the pilot 
     program during the preceding fiscal year. Each such report 
     shall contain, for each laboratory or center in the pilot 
     program,''; and
       (4) by adding at the end of subsection (b) the following 
     new paragraph:
       ``(3) Not later than March 1, 2007, the Secretary of 
     Defense shall submit to the committees referred to in 
     paragraph (2) the Secretary's recommendation as to whether, 
     and to what extent, the authority to carry out the pilot 
     program should be extended.''.

     SEC. 214. REVISED REQUIREMENTS FOR PLAN FOR MANUFACTURING 
                   TECHNOLOGY PROGRAM.

       (a) Streamlined Contents of Plan.--Subsection (e) of 
     section 2521 of title 10, United States Code, is amended by 
     striking ``prepare a five-year plan'' in paragraph (1) and 
     all that follows through the end of subparagraph (B) of 
     paragraph (2) and inserting the following: ``prepare and 
     maintain a five-year plan for the program.
       ``(2) The plan shall establish the following:
       ``(A) The overall manufacturing technology objectives, 
     milestones, priorities, and investment strategy for the 
     program.
       ``(B) The specific objectives of, and funding for the 
     program by, each military department and each Defense Agency 
     participating in the program.''.
       (b) Biennial Report.--Such subsection is further amended in 
     paragraph (3)--
       (1) by striking ``annually'' and inserting ``biennially''; 
     and
       (2) by striking ``for a fiscal year'' and inserting ``for 
     each even-numbered fiscal year''.

     SEC. 215. TECHNOLOGY TRANSITION INITIATIVE.

       (a) Establishment and Conduct.--Chapter 139 of title 10, 
     United States Code, is amended by inserting after section 
     2359 the following new section:

     ``Sec. 2359a. Technology Transition Initiative

       ``(a) Initiative Required.--The Secretary of Defense, 
     acting through the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, shall carry out an 
     initiative, to be known as the Technology Transition 
     Initiative (hereinafter in this section referred to as the 
     `Initiative'), to facilitate the rapid transition of new 
     technologies from science and technology programs of the 
     Department of Defense into acquisition programs of the 
     Department for the production of such technologies.
       ``(b) Objectives.--The Initiative shall have the following 
     objectives:
       ``(1) To accelerate the introduction of new technologies 
     into appropriate acquisition programs.
       ``(2) To successfully demonstrate new technologies in 
     relevant environments.
       ``(3) To ensure that new technologies are sufficiently 
     mature for production.
       ``(c) Management of Initiative.--(1) The Initiative shall 
     be managed by a senior official in the Office of the 
     Secretary of Defense designated by the Secretary (hereinafter 
     in this section referred to as the `Manager'). In managing 
     the Initiative, the Manager shall report directly to the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics.
       ``(2) The Secretary shall establish a board of directors 
     (hereinafter in this section referred to as the `Board'), 
     composed of the acquisition executive of each military 
     department, the members of the Joint Requirements Oversight 
     Council, and the commander of the Joint Forces Command. The 
     Board shall assist the Manager in managing the Initiative.
       ``(3) The Secretary shall establish, under the auspices of 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics, a panel of highly qualified scientists and 
     engineers. The panel shall advise the Under Secretary on 
     matters relating to the Initiative.
       ``(d) Duties of Manager.--The Manager shall have following 
     duties:
       ``(1) To identify, in consultation with the Board, 
     promising technologies that have been demonstrated in science 
     and technology programs of the Department.
       ``(2) To identify potential sponsors in the Department to 
     undertake the transition of such technologies into 
     production.
       ``(3) To work with the science and technology community and 
     the acquisition community to develop memoranda of agreement, 
     joint funding agreements, and other cooperative arrangements 
     to provide for the transition of such technologies into 
     production.
       ``(4) Provide funding support for projects selected under 
     subsection (e).
       ``(e) Jointly Funded Projects.--(1) The acquisition 
     executive of each military department shall identify 
     technology projects of that military department to recommend 
     for funding support under the Initiative and shall submit to 
     the Manager a list of such recommended projects, ranked in 
     order of priority. Such executive shall identify such 
     projects, and establish priorities among such projects, using 
     a competitive process, on the basis of the greatest potential 
     benefits in areas of interest identified by the Secretary of 
     that military department.
       ``(2) The Manager, in consultation with the Board, shall 
     select projects for funding support from among the projects 
     on the lists submitted under paragraph (1). From the funds 
     made available to the Manager for the Initiative, the Manager 
     shall provide funds for each selected project in an amount 
     determined by mutual agreement between the Manager and the 
     acquisition executive of the military department concerned, 
     but not less than 50 percent of the total cost of the 
     project.
       ``(3) The acquisition executive of the military department 
     concerned shall manage each project selected under paragraph 
     (2) that is undertaken by the military department. Memoranda 
     of agreement, joint funding agreements, and other cooperative 
     arrangements between the science and technology community and 
     the acquisition community shall be used in carrying out the 
     project if the acquisition executive determines that it is 
     appropriate to do so to achieve the objectives of the 
     project.
       ``(f) Requirement for Program Element.--In the budget 
     justification materials submitted to Congress in support of 
     the Department of Defense budget for any fiscal year (as 
     submitted with the budget of the President under section 
     1105(a) of title 31), the amount requested for activities of 
     the Initiative shall be set forth in a separate program 
     element within amounts requested for research, development, 
     test, and evaluation for Defense-wide activities.
       ``(g) Definition of Acquisition Executive.--In this 
     section, the term `acquisition executive', with respect to a 
     military department, means the official designated as the 
     senior procurement executive for that military department 
     under section 16(3) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 414(3)).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2359 the following new item:

``2359a. Technology Transition Initiative.''.

     SEC. 216. DEFENSE ACQUISITION CHALLENGE PROGRAM.

       (a) In General.--(1) Chapter 139 of title 10, United States 
     Code, is amended by inserting after section 2359a (as added 
     by section 215) the following new section:

     ``Sec. 2359b. Defense Acquisition Challenge Program

       ``(a) Program Required.--The Secretary of Defense shall 
     carry out a program to provide opportunities for the 
     increased introduction of innovative and cost-saving 
     technology in acquisition programs of the Department of 
     Defense. The program, to be known as the Defense Acquisition 
     Challenge Program (hereinafter in this section referred to as 
     the `Challenge Program'), shall provide any person or 
     activity within or outside the Department of Defense with the 
     opportunity to propose alternatives, to be known as challenge 
     proposals, at the component, subsystem, or system level of an 
     existing Department of Defense acquisition program that would 
     result in improvements in performance, affordability, 
     manufacturability, or operational capability of that 
     acquisition program.
       ``(b) Panel.--(1) In carrying out the Challenge Program, 
     the Secretary shall establish a panel of highly qualified 
     scientists and engineers (hereinafter in this section 
     referred to as the `Panel') under the auspices of the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics. The duty of the Panel shall be to carry out 
     evaluations of challenge proposals under subsection (c).
       ``(2) A member of the Panel may not participate in any 
     evaluation of a challenge proposal under subsection (c) if at 
     any time within the previous five years that member has, in 
     any capacity, participated in or been affiliated with the 
     acquisition program for which the challenge proposal is 
     submitted.
       ``(c) Evaluation by Panel.--(1) Under procedures prescribed 
     by the Secretary, a person

[[Page H5552]]

     or activity within or outside the Department of Defense may 
     submit challenge proposals to the Panel.
       ``(2) The Panel shall carry out an evaluation of each 
     challenge proposal submitted under paragraph (1) to determine 
     each of the following criteria:
       ``(A) Whether the challenge proposal has merit.
       ``(B) Whether the challenge proposal is likely to result in 
     improvements in performance, affordability, 
     manufacturability, or operational capability at the 
     component, subsystem, or system level of the applicable 
     acquisition program.
       ``(C) Whether the challenge proposal could be implemented 
     rapidly in the applicable acquisition program.
       ``(3) If the Panel determines that a challenge proposal 
     satisfies each of the criteria specified in paragraph (2), 
     the person or activity submitting that challenge proposal 
     shall be provided an opportunity to submit such challenge 
     proposal for a full review and evaluation under subsection 
     (d).
       ``(d) Full Review and Evaluation.--(1) Under procedures 
     prescribed by the Secretary, for each challenge proposal 
     submitted for a full review and evaluation as provided in 
     subsection (c)(3), the office carrying out the applicable 
     acquisition program, and the prime system contractor carrying 
     out such program, shall jointly conduct a full review and 
     evaluation of the challenge proposal.
       ``(2) The full review and evaluation shall, independent of 
     the determination of the Panel under subsection (c)(2), 
     determine each of the matters specified in subparagraphs (A), 
     (B), and (C) of such subsection.
       ``(e) Action Upon Favorable Full Review and Evaluation.--
     (1) Under procedures prescribed by the Secretary, each 
     challenge proposal determined under a full review and 
     evaluation to satisfy each of the criteria specified in 
     subsection (c)(2) shall be considered by the prime system 
     contractor for incorporation into the applicable acquisition 
     program as a new technology insertion at the component, 
     subsystem, or system level.
       ``(2) The Secretary shall encourage the adoption of each 
     challenge proposal referred to in paragraph (1) by providing 
     suitable incentives to the office carrying out the applicable 
     acquisition program and the prime system contractor carrying 
     out such program.
       ``(f) Access to Technical Resources.--The Secretary shall 
     ensure that the Panel (in carrying out evaluations of 
     challenge proposals under subsection (c)) and each office and 
     prime system contractor (in conducting a full review and 
     evaluation under subsection (d)) have the authority to call 
     upon the technical resources of the laboratories, research, 
     development, and engineering centers, test and evaluation 
     activities, and other elements of the Department.
       ``(g) Elimination of Conflicts of Interest.--In carrying 
     out each evaluation under subsection (c) and full review 
     under subsection (d), the Secretary shall ensure the 
     elimination of conflicts of interest.
       ``(h) Report.--The Secretary shall submit to Congress, with 
     the submission of the budget request for the Department of 
     Defense for each fiscal year during which the Challenge 
     Program is carried out, a report on the Challenge Program for 
     that fiscal year. The report shall include the number and 
     scope of challenge proposals submitted, evaluated, subjected 
     to full review, and adopted.
       ``(i) Sunset.--The authority to carry out this section 
     shall terminate on September 30, 2007.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2359a (as added by section 215) the following new item:

``2359b. Defense Acquisition Challenge Program.''.
       (b) Initial Funding.--(1) Of the funds authorized to be 
     appropriated by section 201(4) for Defense-wide research, 
     development, test, and evaluation for fiscal year 2003, 
     $25,000,000 shall be available in program element 0603826D8Z 
     for the Defense Acquisition Challenge Program required by 
     section 2359b of title 10, United States Code, as added by 
     subsection (a).
       (2) The funds provided under paragraph (1) may be used only 
     for review and evaluation of challenge proposals, and not for 
     implementation of challenge proposals.

                 Subtitle C--Ballistic Missile Defense

     SEC. 231. LIMITATION ON OBLIGATION OF FUNDS FOR PROCUREMENT 
                   OF PATRIOT (PAC-3) MISSILES PENDING SUBMISSION 
                   OF REQUIRED CERTIFICATION.

       None of the funds appropriated for fiscal year 2003 for 
     procurement of missiles for the Army may be obligated for the 
     Patriot Advanced Capability (PAC-3) missile program until the 
     Secretary of Defense has submitted to the congressional 
     defense committees the following:
       (1) The criteria for the transfer of responsibility for a 
     missile defense program from the Director of the Missile 
     Defense Agency to the Secretary of a military department, as 
     required by section 224(b)(2) of title 10, United States 
     Code.
       (2) The notice and certification with respect to the 
     transfer of responsibility for the Patriot Advanced 
     Capability (PAC-3) missile program from the Director to the 
     Secretary of the Army required by section 224(c) of such 
     title.

     SEC. 232. RESPONSIBILITY OF MISSILE DEFENSE AGENCY FOR 
                   RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
                   RELATED TO SYSTEM IMPROVEMENTS OF PROGRAMS 
                   TRANSFERRED TO MILITARY DEPARTMENTS.

       Section 224(e) of title 10, United States Code, is 
     amended--
       (1) by striking ``before a'' and inserting ``for each'';
       (2) by striking ``is''; and
       (3) by striking ``roles and responsibilities'' and all that 
     follows through the period at the end and inserting 
     ``responsibility for research, development, test, and 
     evaluation related to system improvements for that program 
     remains with the Director.''.

     SEC. 233. AMENDMENTS TO REFLECT CHANGE IN NAME OF BALLISTIC 
                   MISSILE DEFENSE ORGANIZATION TO MISSILE DEFENSE 
                   AGENCY.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Sections 203, 223, and 224 are each amended by striking 
     ``Ballistic Missile Defense Organization'' each place it 
     appears and inserting ``Missile Defense Agency''.
       (2)(A) The heading of section 203 is amended to read as 
     follows:

     ``Sec. 203. Director of Missile Defense Agency''.

       (B) The item relating to such section in the table of 
     sections at the beginning of subchapter II of chapter 8 is 
     amended to read as follows:

``203. Director of Missile Defense Agency.''.

       (b) Public Law 107-107.--(1) Section 232 of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107; 10 U.S.C. 2431 note) is amended by striking 
     ``Ballistic Missile Defense Organization'' each place it 
     appears and inserting ``Missile Defense Agency''.
       (2) The heading for such section is amended to read as 
     follows:

     ``SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE AGENCY.''.

       (c) Public Law 106-398.--(1) Section 3132 of the Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001 (as enacted into law by Public Law 106-398; 10 U.S.C. 
     2431 note) is amended by striking ``Ballistic Missile Defense 
     Organization'' each place it appears and inserting ``Missile 
     Defense Agency''.
       (2) Such section is further amended in subsection (c) by 
     striking ``BMDO'' and inserting ``MDA''.
       (3) The section heading for such section is amended to read 
     as follows:

     ``SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL NUCLEAR 
                   SECURITY ADMINISTRATION AND MISSILE DEFENSE 
                   AGENCY.''.

       (d) Other Laws.--The following provisions are each amended 
     by striking ``Ballistic Missile Defense Organization'' each 
     place it appears and inserting ``Missile Defense Agency'':
       (1) Section 233 of the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 223 note).
       (2) Section 234 of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2431 
     note).
       (3) Sections 235 (10 U.S.C. 2431 note) and 243 (10 U.S.C. 
     2431 note) of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160).

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $24,159,733,000.
       (2) For the Navy, $29,428,876,000.
       (3) For the Marine Corps, $3,588,512,000.
       (4) For the Air Force, $27,299,404,000.
       (5) For Defense-wide activities, $14,370,037,000.
       (6) For the Army Reserve, $1,918,110,000.
       (7) For the Naval Reserve, $1,233,759,000.
       (8) For the Marine Corps Reserve, $185,532,000.
       (9) For the Air Force Reserve, $2,194,719,000.
       (10) For the Army National Guard, $4,300,767,000.
       (11) For the Air National Guard, $4,077,845,000.
       (12) For the Defense Inspector General, $155,165,000.
       (13) For the United States Court of Appeals for the Armed 
     Forces, $9,614,000.
       (14) For Environmental Restoration, Army, $395,900,000.
       (15) For Environmental Restoration, Navy, $256,948,000.
       (16) For Environmental Restoration, Air Force, 
     $389,773,000.
       (17) For Environmental Restoration, Defense-wide, 
     $23,498,000.
       (18) For Environmental Restoration, Formerly Used Defense 
     Sites, $212,102,000.
       (19) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $58,400,000.
       (20) For Drug Interdiction and Counter-drug Activities, 
     Defense-wide, $848,907,000.
       (21) For the Kaho'olawe Island Conveyance, Remediation, and 
     Environmental Restoration Trust Fund, $25,000,000.
       (22) For Defense Health Program, $14,242,541,000.
       (23) For Cooperative Threat Reduction programs, 
     $416,700,000.
       (24) For Support for International Sporting Competitions, 
     Defense, $19,000,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2003 for the use of the

[[Page H5553]]

     Armed Forces and other activities and agencies of the 
     Department of Defense for providing capital for working 
     capital and revolving funds in amounts as follows:
       (1) For the Defense Working Capital Funds, $1,504,956,000.
       (2) For the National Defense Sealift Fund, $934,129,000.

     SEC. 303. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 2003 from the Armed Forces Retirement Home Trust Fund 
     the sum of $69,921,000 for the operation of the Armed Forces 
     Retirement Home.

                  Subtitle B--Environmental Provisions

     SEC. 311. INCIDENTAL TAKING OF MIGRATORY BIRDS DURING 
                   MILITARY READINESS ACTIVITY.

       Section 3 of the Migratory Bird Treaty Act (16 U.S.C. 704) 
     is amended by adding at the end the following new subsection:
       ``(c)(1) Section 2 shall not apply to the incidental taking 
     of a migratory bird by a member of the Armed Forces during a 
     military readiness activity authorized by the Secretary of 
     Defense or the Secretary of the military department 
     concerned.
       ``(2)(A) In this subsection, the term `military readiness 
     activity' includes--
       ``(i) all training and operations of the Armed Forces that 
     relate to combat; and
       ``(ii) the adequate and realistic testing of military 
     equipment, vehicles, weapons, and sensors for proper 
     operation and suitability for combat use.
       ``(B) The term does not include--
       ``(i) the routine operation of installation operating 
     support functions, such as administrative offices, military 
     exchanges, commissaries, water treatment facilities, storage 
     facilities, schools, housing, motor pools, laundries, morale, 
     welfare, and recreation activities, shops, and mess halls;
       ``(ii) the operation of industrial activities; or
       ``(iii) the construction or demolition of facilities used 
     for a purpose described in clause (i) or (ii).''.

     SEC. 312. MILITARY READINESS AND THE CONSERVATION OF 
                   PROTECTED SPECIES.

       (a) Limitation on Designation of Critical Habitat.--Section 
     4(a)(3) of the Endangered Species Act of 1973 (16 U.S.C. 
     1533(a)(3)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (2) by inserting ``(A)'' after ``(3)''; and
       (3) by adding at the end the following:
       ``(B)(i) The Secretary may not designate as critical 
     habitat any lands or other geographical areas owned or 
     controlled by the Department of Defense, or designated for 
     its use, that are subject to an integrated natural resources 
     management plan prepared under section 101 of the Sikes Act 
     (16 U.S.C. 670a), if the Secretary determines that such plan 
     addresses special management considerations or protection (as 
     those terms are used in section 3(5)(A)(i)).
       ``(ii) Nothing in this subparagraph affects the requirement 
     to consult under section 7(a)(2) with respect to an agency 
     action (as that term is defined in that section).
       ``(iii) Nothing in this subparagraph affects the obligation 
     of the Department of Defense to comply with section 9 of the 
     Endangered Species Act of 1973, including the prohibition 
     preventing extinction and taking of endangered species and 
     threatened species.''.
       (b) Consideration of Effects of Designation of Critical 
     Habitat.--Section 4(b)(2) of the Endangered Species Act of 
     1973 (16 U.S.C. 1533(b)(2)) is amended by inserting ``the 
     impact on national security,'' after ``the economic 
     impact,''.

     SEC. 313. SINGLE POINT OF CONTACT FOR POLICY AND BUDGETING 
                   ISSUES REGARDING UNEXPLODED ORDNANCE, DISCARDED 
                   MILITARY MUNITIONS, AND MUNITIONS CONSTITUENTS.

       Section 2701 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(k) UXO Program Manager.--(1) The Secretary of Defense 
     shall establish a program manager who shall serve as the 
     single point of contact in the Department of Defense for 
     policy and budgeting issues involving the characterization, 
     remediation, and management of explosive and related risks 
     with respect to unexploded ordnance, discarded military 
     munitions, and munitions constituents at defense sites (as 
     such terms are defined in section 2710 of this title) that 
     pose a threat to human health or safety.
       ``(2) The Secretary of Defense may delegate this authority 
     to the Secretary of a military department, who may delegate 
     the authority to the Under Secretary of that military 
     department. The authority may not be further delegated.
       ``(3) The program manager may establish an independent 
     advisory and review panel that may include representatives of 
     the National Academy of Sciences, nongovernmental 
     organizations with expertise regarding unexploded ordnance, 
     discarded military munitions, or munitions constituents, the 
     Environmental Protection Agency, States (as defined in 
     section 2710 of this title), and tribal governments. If 
     established, the panel would report annually to Congress on 
     progress made by the Department of Defense to address 
     unexploded ordnance, discarded military munitions, or 
     munitions constituents at defense sites and make such 
     recommendations as the panel considered appropriate.''.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

     SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT TO PROVIDE 
                   BASE OPERATING SUPPORT TO FISHER HOUSES.

       Section 2493(f) of title 10, United States Code, is amended 
     to read as follows:
       ``(f) Base Operating Support.--The Secretary of a military 
     department may provide base operating support for Fisher 
     Houses associated with health care facilities of that 
     military department.''.

     SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL FACILITIES 
                   BY MEMBERS OF NATIONAL GUARD SERVING IN 
                   NATIONAL EMERGENCY.

       (a) Additional Basis for Authorized Use.--Section 1063a of 
     title 10, United States Code, is amended--
       (1) in subsection (a), by inserting ``or national 
     emergency'' after ``federally declared disaster''; and
       (2) in subsection (c), by adding at the end the following 
     new paragraph:
       ``(3) National emergency.--The term `national emergency' 
     means a national emergency declared by the President or 
     Congress.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 1063a. Use of commissary stores and MWR retail 
       facilities: members of National Guard serving in federally 
       declared disaster or national emergency''.

       (2) The table of sections at the beginning of chapter 54 of 
     such title is amended by striking the item relating to 
     section 1063a and inserting the following new item:

``1063a. Use of commissary stores and MWR retail facilities: members of 
              National Guard serving in federally declared disaster or 
              national emergency.''.

     SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MORALE, WELFARE, 
                   AND RECREATION PROGRAMS.

       (a) In General.--Chapter 147 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2494. Uniform funding and management of morale, 
       welfare, and recreation programs

       ``(a) Authority for Uniform Funding and Management.--Under 
     regulations prescribed by the Secretary of Defense, funds 
     appropriated to the Department of Defense and available for 
     morale, welfare, and recreation programs may be treated as 
     nonappropriated funds and expended in accordance with laws 
     applicable to the expenditures of nonappropriated funds. When 
     made available for morale, welfare, and recreation programs 
     under such regulations, appropriated funds shall be 
     considered to be nonappropriated funds for all purposes and 
     shall remain available until expended.
       ``(b) Conditions on Availability.--Funds appropriated to 
     the Department of Defense may be made available to support a 
     morale, welfare, or recreation program only if the program is 
     authorized to receive appropriated fund support and only in 
     the amounts the program is authorized to receive.
       ``(c) Conversion of Employment Positions.--(1) The 
     Secretary of Defense may identify positions of employees in 
     morale, welfare, and recreation programs within the 
     Department of Defense who are paid with appropriated funds 
     whose status may be converted from the status of an employee 
     paid with appropriated funds to the status of an employee of 
     a nonappropriated fund instrumentality.
       ``(2) The status of an employee in a position identified by 
     the Secretary under paragraph (1) may, with the consent of 
     the employee, be converted to the status of an employee of a 
     nonappropriated fund instrumentality. An employee who does 
     not consent to the conversion may not be removed from the 
     position because of the failure to provide such consent.
       ``(3) The conversion of an employee from the status of an 
     employee paid by appropriated funds to the status of an 
     employee of a nonappropriated fund instrumentality shall be 
     without a break in service for the concerned employee. The 
     conversion shall not entitle an employee to severance pay, 
     back pay or separation pay under subchapter IX of chapter 55 
     of title 5, or be considered an involuntary separation or 
     other adverse personnel action entitling an employee to any 
     right or benefit under such title or any other provision of 
     law or regulation.
       ``(4) In this subsection, the term `an employee of a 
     nonappropriated fund instrumentality' means an employee 
     described in section 2105(c) of title 5.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2494. Uniform funding and management of morale, welfare, and 
              recreation programs.''.

                 Subtitle D--Workplace and Depot Issues

     SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION WITH 
                   REQUIRED STUDIES FOR CONVERSION OF COMMERCIAL 
                   OR INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR 
                   PERFORMANCE.

       Subsection (c) of section 2461 of title 10, United States 
     Code, is amended to read as follows:
       ``(c) Submission of Analysis Results.--(1) Upon the 
     completion of an analysis of a commercial or industrial type 
     function described in subsection (a) for possible change to 
     performance by the private sector, the Secretary of Defense 
     shall submit to Congress a

[[Page H5554]]

     report containing the results of the analysis, including the 
     results of the examinations required by subsection (b)(3).
       ``(2) The report shall also contain the following:
       ``(A) The date when the analysis of the function was 
     commenced.
       ``(B) The Secretary's certification that the Government 
     calculation of the cost of performance of the function by 
     Department of Defense civilian employees is based on an 
     estimate of the most cost effective manner for performance of 
     the function by Department of Defense civilian employees.
       ``(C) The number of Department of Defense civilian 
     employees who were performing the function when the analysis 
     was commenced and the number of such employees whose 
     employment was or will be terminated or otherwise affected by 
     changing to performance of the function by the private sector 
     or by implementation of the most efficient organization of 
     the function.
       ``(D) The Secretary's certification that the factors 
     considered in the examinations performed under subsection 
     (b)(3), and in the making of the decision regarding changing 
     to performance of the function by the private sector or 
     retaining performance in the most efficient organization of 
     the function, did not include any predetermined personnel 
     constraint or limitation in terms of man years, end strength, 
     full-time equivalent positions, or maximum number of 
     employees.
       ``(E) A statement of the potential economic effect of 
     implementing the decision regarding changing to performance 
     of the function by the private sector or retaining 
     performance in the most efficient organization of the 
     function on each affected local community, as determined in 
     the examination under subsection (b)(3)(B)(ii).
       ``(F) A schedule for completing the change to performance 
     of the function by the private sector or implementing the 
     most efficient organization of the function.
       ``(G) In the case of a commercial or industrial type 
     function performed at a Center of Industrial and Technical 
     Excellence designated under section 2474(a) of this title or 
     an Army ammunition plant, a description of the effect that 
     the manner of performance of the function, and administration 
     of the resulting contract if any, will have on the overhead 
     costs of the center or ammunition plant, as the case may be.
       ``(H) The Secretary's certification that the entire 
     analysis is available for examination.
       ``(3)(A) If a decision is made to change the commercial or 
     industrial type function that was the subject of the analysis 
     to performance by the private sector, the change of the 
     function to contractor performance may not begin until after 
     the submission of the report required by paragraph (1).
       ``(B) Notwithstanding subparagraph (A), in the case of a 
     commercial or industrial type function performed at a Center 
     of Industrial and Technical Excellence designated under 
     section 2474(a) of this title or an Army ammunition plant, 
     the change of the function to contractor performance may not 
     begin until at least 60 days after the submission of the 
     report.''.

     SEC. 332. WAIVER AUTHORITY REGARDING PROHIBITION ON CONTRACTS 
                   FOR PERFORMANCE OF SECURITY-GUARD FUNCTIONS.

       Section 2465 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c) The Secretary of Defense or the Secretary of a 
     military department may waive the prohibition under 
     subsection (a) regarding contracting for the performance of 
     security-guard functions at a military installation or 
     facility under the jurisdiction of the Secretary if such 
     functions--
       ``(1) are or will be performed by members of the armed 
     forces in the absence of a waiver; or
       ``(2) were not performed at the installation or facility 
     before September 11, 2001.''.

     SEC. 333. EXCLUSION OF CERTAIN EXPENDITURES FROM PERCENTAGE 
                   LIMITATION ON CONTRACTING FOR PERFORMANCE OF 
                   DEPOT-LEVEL MAINTENANCE AND REPAIR WORKLOADS.

       Section 2474(f)(2) of title 10, United States Code, is 
     amended by striking ``for fiscal years 2002 through 2005''.

     SEC. 334. REPEAL OF OBSOLETE PROVISION REGARDING DEPOT-LEVEL 
                   MAINTENANCE AND REPAIR WORKLOADS THAT WERE 
                   PERFORMED AT CLOSED OR REALIGNED MILITARY 
                   INSTALLATIONS.

       (a) Repeal.--Section 2469a of title 10, United States Code, 
     is repealed.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 146 of such title is amended by striking 
     the item relating to section 2469a.

     SEC. 335. CLARIFICATION OF REQUIRED CORE LOGISTICS 
                   CAPABILITIES.

       Section 2464(a)(3) of title 10, United States Code, is 
     amended by striking ``those capabilities that are necessary 
     to maintain and repair the weapon systems'' and inserting 
     ``those logistics capabilities (including acquisition 
     logistics, supply management, system engineering, 
     maintenance, and modification management) that are necessary 
     to sustain the weapon systems''.

                Subtitle E--Defense Dependents Education

     SEC. 341. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 2003.--Of the amount authorized to be 
     appropriated pursuant to section 301(5) for operation and 
     maintenance for Defense-wide activities, $35,000,000 shall be 
     available only for the purpose of providing educational 
     agencies assistance to local educational agencies.
       (b) Notification.--Not later than June 30, 2003, the 
     Secretary of Defense shall notify each local educational 
     agency that is eligible for educational agencies assistance 
     for fiscal year 2003 of--
       (1) that agency's eligibility for the assistance; and
       (2) the amount of the assistance for which that agency is 
     eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under subsection (a) not later 
     than 30 days after the date on which notification to the 
     eligible local educational agencies is provided pursuant to 
     subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

     SEC. 342. AVAILABILITY OF QUARTERS ALLOWANCE FOR 
                   UNACCOMPANIED DEFENSE DEPARTMENT TEACHER 
                   REQUIRED TO RESIDE ON OVERSEAS MILITARY 
                   INSTALLATION.

       (a) Authority To Provide Allowance.--Subsection (b) of 
     section 7 of the Defense Department Overseas Teachers Pay and 
     Personnel Practices Act (20 U.S.C. 905) is amended by adding 
     at the end the following new sentence: ``If the teacher is 
     unaccompanied by dependents and is required to reside on a 
     United States military installation in an overseas area, the 
     teacher may receive a quarters allowance to reside in excess 
     family housing at the installation notwithstanding the 
     availability single room housing at the installation.''.
       (b) Technical Correction To Reflect Codification.--Such 
     section is further amended by striking ``the Act of June 26, 
     1930 (5 U.S.C. 118a)'' both places it appears and inserting 
     ``section 5912 of title 5, United States Code''.

     SEC. 343. PROVISION OF SUMMER SCHOOL PROGRAMS FOR STUDENTS 
                   WHO ATTEND DEFENSE DEPENDENTS' EDUCATION 
                   SYSTEM.

       Section 1402(d) of the Defense Dependents' Education Act of 
     1978 (20 U.S.C. 921(d)) is amended by striking paragraph (2) 
     and inserting the following new paragraph (2):
       ``(2) Individuals eligible to receive a free public 
     education under subsection (a) may enroll without charge in a 
     summer school program offered under this subsection. Students 
     who are required under section 1404 to pay tuition to enroll 
     in a school of the defense dependents' education system shall 
     also be charged a fee, at a rate established by the 
     Secretary, to attend a course offered as part of the summer 
     school program.''.

                   Subtitle F--Information Technology

     SEC. 351. AUTHORIZED DURATION OF BASE CONTRACT FOR NAVY-
                   MARINE CORPS INTRANET.

       Section 814 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, as enacted into law 
     by Public Law 106-398 (114 Stat. 1654A-215) and amended by 
     section 362 of Public Law 107-107 (115 Stat. 1065), is 
     amended--
       (1) by redesignating subsection (i) as subsection (j); and
       (2) by inserting after subsection (h) the following new 
     subsection (i):
       ``(i) Duration of Base Navy-Marine Corps Intranet 
     Contract.--Notwithstanding section 2306c of title 10, United 
     States Code, the base contract of the Navy-Marine Corps 
     Intranet contract may have a term in excess of five years, 
     but not more than seven years.''.

     SEC. 352. ANNUAL SUBMISSION OF INFORMATION ON NATIONAL 
                   SECURITY AND INFORMATION TECHNOLOGY CAPITAL 
                   ASSETS.

       (a) Requirement To Submit Information.--Not later than the 
     date that the President submits the budget of the United 
     States Government to Congress each year, the Secretary of 
     Defense shall submit to Congress a description of, and 
     relevant budget information on, each information technology 
     and national security capital asset of the Department of 
     Defense that--
       (1) has an estimated life cycle cost (as computed in fiscal 
     year 2003 constant dollars), in excess of $120,000,000; and
       (2) has a cost for the fiscal year in which the description 
     is submitted (as computed in fiscal year 2003 constant 
     dollars) in excess of $30,000,000.
       (b) Information To Be Included.--The description submitted 
     under subsection (a) shall include, with respect to each such 
     capital asset and national security system--
       (1) the name and identifying acronym;
       (2) the date of initiation;
       (3) a summary of performance measurements and metrics;
       (4) the total amount of funds, by appropriation account, 
     appropriated and obligated for prior fiscal years, with a 
     specific breakout of such information for the two preceding 
     fiscal years;
       (5) the funds, by appropriation account, requested for that 
     fiscal year;
       (6) each prime contractor and the work to be performed;
       (7) a description of program management and management 
     oversight;

[[Page H5555]]

       (8) the original baseline cost and most current baseline 
     information; and
       (9) a description of compliance with the provisions enacted 
     in the Government Performance Results Act of 1993 (Public Law 
     103-62; 107 Stat. 285) and the Clinger-Cohen Act of 1996 
     (division D of Public Law 104-106; 110 Stat. 642).
       (c) Additional Information To Be Included for Certain 
     Systems.--(1) For each information technology and national 
     security system of the Department of Defense that has a cost 
     for the fiscal year in excess of $2,000,000, the Secretary 
     shall identify that system by name, function, and total funds 
     requested for the system.
       (2) For each information technology and national security 
     system of the Department of Defense that has a cost for the 
     fiscal year in excess of $10,000,000, the Secretary shall 
     identify that system by name, function, and total funds 
     requested (by appropriation account) for that fiscal year, 
     the funds appropriated for the preceding fiscal year, and the 
     funds estimated to be requested for the next fiscal year.
       (d) Definitions.--In this section:
       (1) The term ``information technology'' has the meaning 
     given that term in section 5002 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1401(3)).
       (2) The term ``capital asset'' has the meaning given that 
     term in Office of Management and Budget Circular A-11.
       (3) The term ``national security system'' has the meaning 
     given that term in section 5142 of the Clinger-Cohen Act of 
     1996 (40 U.S.C. 1452).

     SEC. 353. IMPLEMENTATION OF POLICY REGARDING CERTAIN 
                   COMMERCIAL OFF-THE-SHELF INFORMATION TECHNOLOGY 
                   PRODUCTS.

       The Secretary of Defense shall ensure that--
       (1) the Department of Defense implements the policy 
     established by the Committee on National Security Systems 
     (formerly the National Security Telecommunications and 
     Information Systems Security Committee) that limits the 
     acquisition by the Federal Government of all commercial off-
     the-shelf information assurance and information assurance-
     enabled information technology products to those products 
     that have been evaluated and validated in accordance with 
     appropriate criteria, schemes, or programs; and
       (2) implementation of such policy includes uniform 
     enforcement procedures.

     SEC. 354. INSTALLATION AND CONNECTION POLICY AND PROCEDURES 
                   REGARDING DEFENSE SWITCH NETWORK.

       (a) Establishment of Policy and Procedures.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Secretary of Defense shall establish clear and uniform policy 
     and procedures, applicable to the military departments and 
     Defense Agencies, regarding the installation and connection 
     of telecom switches to the Defense Switch Network.
       (b) Elements of Policy and Procedures.--The policy and 
     procedures shall address at a minimum the following:
       (1) Clear interoperability and compatibility requirements 
     for certifying, installing, and connecting telecom switches 
     to the Defense Switch Network.
       (2) Current, complete, and enforceable testing, validation, 
     and certification procedures needed to ensure the 
     interoperability and compatibility requirements are 
     satisfied.
       (c) Exceptions.--(1) The Secretary of Defense may specify 
     certain circumstances in which--
       (A) the requirements for testing, validation, and 
     certification of telecom switches may be waived; or
       (B) interim authority for the installation and connection 
     of telecom switches to the Defense Switch Network may be 
     granted.
       (2) Only the Assistant Secretary of Defense for Command, 
     Control, Communications, and Intelligence, after consultation 
     with the Chairman of the Joint Chiefs of Staff, may approve a 
     waiver or grant of interim authority under paragraph (1).
       (d) Inventory of Defense Switch Network.--The Secretary of 
     Defense shall prepare and maintain an inventory of all 
     telecom switches that, as of the date on which the Secretary 
     issues the policy and procedures--
       (1) are installed or connected to the Defense Switch 
     Network; but
       (2) have not been tested, validated, and certified by the 
     Defense Information Systems Agency (Joint Interoperability 
     Test Center).
       (e) Telecom Switch Defined.--In this section, the term 
     ``telecom switch'' means hardware or software designed to 
     send and receive voice, data, and video signals across a 
     network.

                       Subtitle G--Other Matters

     SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLOCATION OF 
                   FUNDS WITHIN OPERATION AND MAINTENANCE BUDGET 
                   SUBACTIVITIES.

       (a) Designation of Recipients.--Subsection (a) of section 
     228 of title 10, United States Code, is amended by striking 
     ``to Congress'' and inserting ``to the congressional defense 
     committees''.
       (b) Congressional Defense Committees Defined.--Subsection 
     (e) of such section is amended--
       (1) by striking ``(e) O&M Budget Activity Defined.--For 
     purposes of this section, the'' and inserting the following:
       ``(e) Definitions.--In this section:
       ``(1) The''; and
       (2) by adding at the end the following:
       ``(2) The term `congressional defense committees' means the 
     Committee on Armed Services and the Committee on 
     Appropriations of the Senate and the Committee on Armed 
     Services and the Committee on Appropriations of the House of 
     Representatives.''.

     SEC. 362. MINIMUM DEDUCTION FROM PAY OF CERTAIN MEMBERS OF 
                   THE ARMED FORCES TO SUPPORT ARMED FORCES 
                   RETIREMENT HOME.

       Section 1007(i) of title 37, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``an amount (determined 
     under paragraph (3)) not to exceed $1.00.'' and inserting 
     ``an amount equal to $1.00 and such additional amount as may 
     be determined under paragraph (3).''; and
       (2) in paragraph (3)--
       (A) by striking ``the amount'' in the first sentence and 
     inserting ``the additional amount''; and
       (B) by striking ``The amount'' in the second sentence and 
     inserting ``The additional amount''.

     SEC. 363. CONDITION ON CONVERSION OF DEFENSE SECURITY SERVICE 
                   TO A WORKING CAPITAL FUNDED ENTITY.

       The Secretary of Defense may not convert the Defense 
     Security Service to a working capital funded entity of the 
     Department of Defense unless the Secretary submits, in 
     advance, to the Committee on Armed Services of the House of 
     Representatives and the Committee on Armed Services of the 
     Senate a certification that the Defense Security Service has 
     the financial systems in place to fully support operation of 
     the Defense Security Service as a working capital funded 
     entity under section 2208 of title 10, United States Code.

     SEC. 364. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

       (a) Extension Through Fiscal Year 2004.--Subsection (a) of 
     section 343 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-65) is amended by 
     striking ``and 2002'' and inserting ``through 2004''.
       (b) Reporting Requirements.--Subsection (g) of such section 
     is amended--
       (1) in paragraph (1), by striking ``2002'' and inserting 
     ``2004''; and
       (2) in paragraph (2), by striking the first sentence and 
     inserting the following new sentence: ``Not later than July 
     1, 2003, the Secretary of the Army shall submit to the 
     congressional defense committees a report on the results of 
     the demonstration program since its implementation, including 
     the Secretary's views regarding the benefits of the program 
     for Army manufacturing arsenals and the Department of the 
     Army and the success of the program in achieving the purposes 
     specified in subsection (b).''.

     SEC. 365. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL STATUS OF 
                   RESOURCES AND TRAINING SYSTEM, AND TRAINING 
                   RANGE INVENTORY.

       (a) Plan Required.--(1) The Secretary of Defense shall 
     develop a comprehensive plan for using existing authorities 
     available to the Secretary of Defense and the Secretaries of 
     the military departments to address problems created by 
     limitations on the use of military lands, marine areas, and 
     airspace reserved, withdrawn, or designated for training and 
     testing activities by, for, or on behalf of the Armed Forces.
       (2) The plan shall include the following:
       (A) Goals and milestones for tracking planned actions and 
     measuring progress.
       (B) Projected funding requirements for implementing planned 
     actions.
       (C) Designation of an office in the Office of the Secretary 
     of Defense and each of the military departments that will 
     have lead responsibility for overseeing implementation of the 
     plan.
       (3) The Secretary of Defense shall submit the plan to 
     Congress at the same time as the President submits the budget 
     for fiscal year 2004 and shall submit an annual report to 
     Congress describing the progress made in implementing the 
     plan and any additional encroachment problems.
       (b) Readiness Reporting Improvement.--Not later than June 
     30, 2003, the Secretary of Defense, using existing measures 
     within the authority of the Secretary, shall submit to 
     Congress a report on the plans of the Department of Defense 
     to improve the Global Status of Resources and Training 
     System--
       (1) to better reflect the increasing challenges units of 
     the Armed Forces must overcome to achieve training 
     requirements; and
       (2) to quantify the extent to which encroachment and other 
     individual factors are making military lands, marine areas, 
     and airspace less available to support unit accomplishment of 
     training plans and readiness goals.
       (c) Training Range Inventory.--The Secretary of Defense 
     shall develop and maintain a training range data bank for 
     each of the Armed Forces--
       (1) to identify all available operational training ranges;
       (2) to identify all training capacities and capabilities 
     available at each training range;
       (3) to identify all current encroachment threats or other 
     potential limitations on training that are, or are likely to, 
     adversely affect training and readiness; and
       (4) to provide a point of contact for each training range.
       (d) GAO Evaluation.--(1) With respect to each report 
     submitted under this section, the

[[Page H5556]]

     Comptroller General shall submit to Congress, within 60 days 
     after receiving the report, an evaluation of the report.
       (e) Armed Forces Defined.--In this section, the term 
     ``Armed Forces'' means the Army, Navy, Air Force, and Marine 
     Corps.

     SEC. 366. AMENDMENTS TO CERTAIN EDUCATION AND NUTRITION LAWS 
                   RELATING TO ACQUISITION AND IMPROVEMENT OF 
                   MILITARY HOUSING.

       (a) Eligibility for Heavily Impacted Local Educational 
     Agencies Affected by Privatization of Military Housing.--
     Section 8003(b)(2) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding at 
     the end the following:
       ``(H) Eligibility for heavily impacted local educational 
     agencies affected by privatization of military housing.--
       ``(i) Eligibility.--For any fiscal year beginning with 
     fiscal year 2003, a heavily impacted local educational agency 
     that received a basic support payment under subparagraph (A) 
     for the prior fiscal year, but is ineligible for such payment 
     for the current fiscal year under subparagraph (B) or (C), as 
     the case may be, by reason of the conversion of military 
     housing units to private housing described in clause (iii), 
     shall be deemed to meet the eligibility requirements under 
     subparagraph (B) or (C), as the case may be, for the period 
     during which the housing units are undergoing such 
     conversion.
       ``(ii) Amount of payment.--The amount of a payment to a 
     heavily impacted local educational agency for a fiscal year 
     by reason of the application of clause (i), and calculated in 
     accordance with subparagraph (D) or (E) (as the case may be), 
     shall be based on the number of children in average daily 
     attendance in the schools of such agency for the fiscal year.
       ``(iii) Conversion of military housing units to private 
     housing described.--For purposes of clause (i), `conversion 
     of military housing units to private housing' means the 
     conversion of military housing units to private housing units 
     pursuant to subchapter IV of chapter 169 of title 10, United 
     States Code, or pursuant to any other related provision of 
     law.''.
       (b) Exclusion of Certain Military Basic Allowances for 
     Housing for Determination of Eligibility for Free and Reduced 
     Price Meals.--Section 9(b)(3) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1758(b)(3)) is amended 
     by adding at the end the following: ``For the one-year period 
     beginning on the date of the enactment of this sentence, the 
     amount of a basic allowance provided under section 403 of 
     title 37, United States Code, on behalf of an individual who 
     is a member of the uniformed services for housing that is 
     acquired or constructed under the authority of subchapter IV 
     of chapter 169 of title 10, United States Code, or any other 
     related provision of law, shall not be considered to be 
     income for purposes of determining the eligibility of a child 
     of the individual for free or reduced price lunches under 
     this Act.''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 2003, as follows:
       (1) The Army, 484,800.
       (2) The Navy, 379,457.
       (3) The Marine Corps, 175,000.
       (4) The Air Force, 360,795.

     SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

       (a) Revised End Strength Floors.--Section 691(b) of title 
     10, United States Code, is amended--
       (1) in paragraph (1), by striking ``480,000'' and inserting 
     ``484,800'';
       (2) in paragraph (2), by striking ``376,000'' and inserting 
     ``379,457';
       (3) in paragraph (3), by striking ``172,600'' and inserting 
     ``175,000''; and
       (4) in paragraph (4), by striking ``358,800'' and inserting 
     ``360,795''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2002, or the date of the 
     enactment of this Act, whichever is later.

     SEC. 403. AUTHORITY FOR MILITARY DEPARTMENT SECRETARIES TO 
                   INCREASE ACTIVE-DUTY END STRENGTHS BY UP TO 1 
                   PERCENT.

       (a) Service Secretary Authority.--Section 115 of title 10, 
     United States Code, is amended by inserting after subsection 
     (e) the following new subsection:
       ``(f) Upon determination by the Secretary of a military 
     department that such action would enhance manning and 
     readiness in essential units or in critical specialties or 
     ratings, the Secretary may increase the end strength 
     authorized pursuant to subsection (a)(1)(A) for a fiscal year 
     for the armed force under the jurisdiction of that Secretary 
     or, in the case of the Secretary of the Navy, for any of the 
     armed forces under the jurisdiction of that Secretary. Any 
     such increase for a fiscal year--
       ``(1) shall be by a number equal to not more than 1 percent 
     of such authorized end strength; and
       ``(2) shall be counted as part of the increase for that 
     armed force for that fiscal year authorized under subsection 
     (c)(1).''.
       (b) Effective Date.--Subsection (f) of section 115 of title 
     10, United States Code, as added by subsection (a), shall 
     take effect on October 1, 2002, or the date of the enactment 
     of this Act, whichever is later.

     SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.

       (a) Exclusion of Senior Military Assistant to the Secretary 
     of Defense from Limitation on Active Duty Officers in Grades 
     Above Major General and Rear Admiral.--Effective on the date 
     specified in subsection (e), section 525(b) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(8) An officer while serving in a position designated by 
     the Secretary of Defense as Senior Military Assistant to the 
     Secretary of Defense, if serving in the grade of lieutenant 
     general or vice admiral, is in addition to the number that 
     otherwise would be permitted for that officer's armed force 
     for that grade under paragraph (1) or (2). Only one officer 
     may be designated as Senior Military Assistant to the 
     Secretary of Defense for purposes of this paragraph.''.
       (b) Increase in Number of Lieutenant Generals Authorized 
     for the Marine Corps.--Effective on the date specified in 
     subsection (e), paragraph (2)(B) of such section is amended 
     by striking ``16.2 percent'' and inserting ``17.5 percent''.
       (c) Grade of Chief of Veterinary Corps of the Army.--(1) 
     Effective on the date specified in subsection (e), chapter 
     307 of such title is amended by adding at the end the 
     following new section:

     ``Sec. 3084. Chief of Veterinary Corps: grade

       ``The Chief of the Veterinary Corps of the Army serves in 
     the grade of brigadier general. An officer appointed to that 
     position who holds a lower grade shall be appointed in the 
     grade of brigadier general.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``3084. Chief of Veterinary Corps: grade.''.

       (d) Review of Active Duty and Reserve General and Flag 
     Officer Authorizations.--(1) The Secretary of Defense shall 
     submit to Congress a report containing any recommendations of 
     the Secretary (together with the rationale of the Secretary 
     for the recommendations) concerning the following:
       (A) Revision of the limitations on general and flag officer 
     grade authorizations and distribution in grade prescribed by 
     sections 525, 526, and 12004 of title 10, United States Code.
       (B) Statutory designation of the positions and grades of 
     any additional general and flag officers in the commands 
     specified in chapter 1006 of title 10, United States Code, 
     and the reserve component offices specified in sections 3038, 
     5143, 5144, and 8038 of such title.
       (2) The provisions of subsection (b) through (e) of section 
     1213 of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2694) shall apply to 
     the report under paragraph (1) in the same manner as they 
     applied to the report required by subsection (a) of that 
     section.
       (e) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall take effect on the date of the 
     receipt by Congress of the report required by subsection (d).

     SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING TO 
                   MANAGEMENT OF NUMBERS OF GENERAL AND FLAG 
                   OFFICERS IN CERTAIN GRADES.

       (a) Senior Joint Officer Positions.--Section 604(c) of 
     title 10, United States Code, is amended by striking 
     ``September 30, 2003'' and inserting ``December 31, 2004''.
       (b) Distribution of Officers on Active Duty in General and 
     Flag Officer Grades.--Section 525(b)(5)(C) of such title is 
     amended by striking ``September 30, 2003'' and inserting 
     ``December 31, 2004''.
       (c) Authorized Strength for General and Flag Officers on 
     Active Duty.--Section 526(b)(3) of such title is amended by 
     striking ``October 1, 2002'' and inserting ``December 31, 
     2004''.

                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

       (a) In General.--The Armed Forces are authorized strengths 
     for Selected Reserve personnel of the reserve components as 
     of September 30, 2003, as follows:
       (1) The Army National Guard of the United States, 350,000.
       (2) The Army Reserve, 205,000.
       (3) The Naval Reserve, 87,800.
       (4) The Marine Corps Reserve, 39,558.
       (5) The Air National Guard of the United States, 106,600.
       (6) The Air Force Reserve, 75,600.
       (7) The Coast Guard Reserve, 9,000.
       (b) Adjustments.--The end strengths prescribed by 
     subsection (a) for the Selected Reserve of any reserve 
     component shall be proportionately reduced by--
       (1) the total authorized strength of units organized to 
     serve as units of the Selected Reserve of such component 
     which are on active duty (other than for training) at the end 
     of the fiscal year; and
       (2) the total number of individual members not in units 
     organized to serve as units of the Selected Reserve of such 
     component who are on active duty (other than for training or 
     for unsatisfactory participation in training) without their 
     consent at the end of the fiscal year.

     Whenever such units or such individual members are released 
     from active duty during any fiscal year, the end strength 
     prescribed for such fiscal year for the Selected Reserve of 
     such reserve component shall be proportionately increased by 
     the total authorized strengths of such units and by the total 
     number of such individual members.

[[Page H5557]]

     SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN 
                   SUPPORT OF THE RESERVES.

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 2003, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 24,562.
       (2) The Army Reserve, 14,070.
       (3) The Naval Reserve, 14,572.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 11,697.
       (6) The Air Force Reserve, 1,498.

     SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL 
                   STATUS).

       The minimum number of military technicians (dual status) as 
     of the last day of fiscal year 2003 for the reserve 
     components of the Army and the Air Force (notwithstanding 
     section 129 of title 10, United States Code) shall be the 
     following:
       (1) For the Army National Guard of the United States, 
     24,102.
       (2) For the Army Reserve, 6,599.
       (3) For the Air National Guard of the United States, 
     22,495.
       (4) For the Air Force Reserve, 9,911.

     SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STATUS 
                   TECHNICIANS.

       (a) Army.--The number of non-dual status technicians 
     employed by the reserve components of the Army as of 
     September 30, 2003, may not exceed the following:
       (1) For the Army Reserve, 995.
       (2) For the Army National Guard of the United States, 
     1,600, to be counted within the limitation specified in 
     section 10217(c)(2) of title 10, United States Code.
       (b) Air Force.--The number of non-dual status technicians 
     employed by the reserve components of the Army and the Air 
     Force as of September 30, 2003, may not exceed the following:
       (1) For the Air Force Reserve, 90.
       (2) For the Air National Guard of the United States, 350, 
     to be counted within the limitation specified in section 
     10217(c)(2) of title 10, United States Code.
       (c) Non-Dual Status Technicians Defined.--In this section, 
     the term ``non-dual status technician'' has the meaning given 
     that term in section 10217(a) of title 10, United States 
     Code.
       (d) Technical Amendments.--Effective October 1, 2002, 
     section 10217(c)(2) of title 10, United States Code, is 
     amended--
       (1) in the first sentence, by striking ``Effective October 
     1, 2002, the'' and inserting ``The''; and
       (2) in the second sentence, by striking ``after the 
     preceding sentence takes effect''.

              Subtitle C--Authorization of Appropriations

     SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 
                   PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     2003 a total of $93,725,028,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2003.

                   TITLE V--MILITARY PERSONNEL POLICY

     SEC. 501. INCREASE IN NUMBER OF DEPUTY 
                   COMMANDANTS OF THE MARINE CORPS.

       Section 5045 of title 10, United States Code, is amended by 
     striking ``five'' and inserting ``six''.

     SEC. 502. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER AUTHORITY 
                   FOR OFFICERS APPOINTED TO A RESERVE CHIEF OR 
                   GUARD DIRECTOR POSITION.

       (a) Waiver of Requirement for Significant Joint Duty 
     Experience.--Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), 
     8038(b)(4), and 10506(a)(3)(D) of title 10, United States 
     Code, are each amended by striking ``October 1, 2003'' and 
     inserting ``December 31, 2004''.
       (b) Report on Future Implementation of Requirement.--Not 
     later than one year after the date of the enactment of this 
     Act, the Secretary of Defense shall submit to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report setting 
     forth the steps being taken (and proposed to be taken) by the 
     Secretary, the Secretaries of the military departments, and 
     the Chairman of the Joint Chiefs of Staff to ensure that no 
     further extension of the waiver authority under the sections 
     amended by subsection (a) is required and that after December 
     31, 2004, appointment of officers to serve in the positions 
     covered by those sections shall be made from officers with 
     the requisite joint duty experience.

                Subtitle B--Reserve Component Management

     SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH ACCOUNTING AND 
                   MANAGEMENT AND OTHER ISSUES.

       (a) Comptroller General Assessments.--Not later than one 
     year after the date of the enactment of this Act, the 
     Comptroller General shall submit to Congress a report on 
     management of the National Guard. The report shall include 
     the following:
       (1) The Comptroller General's assessment of the 
     effectiveness of the implementation of Department of Defense 
     plans for improving management and accounting for personnel 
     strengths in the National Guard, including an assessment of 
     the process that the Department of Defense, the National 
     Guard Bureau, the Army National Guard and State-level 
     National Guard leadership, and leadership in the other 
     reserve components have for identifying and addressing in a 
     timely manner specific units in which nonparticipation rates 
     are significantly in excess of the established norms.
       (2) The Comptroller General's assessment of the 
     effectiveness of the process for Federal recognition of 
     senior National Guard officers and recommendations for 
     improvement to that process.
       (3) The Comptroller General's assessment of the process 
     for, and the nature and extent of, the administrative or 
     judicial corrective action taken by the Secretary of Defense, 
     the Secretary of the Army, and the Secretary of the Air Force 
     as a result of Inspector General investigations or other 
     investigations in which allegations against senior National 
     Guard officers are substantiated in whole or in part.
       (4) The Comptroller General's determination of the 
     effectiveness of the Federal protections provided for members 
     or employees of the National Guard who report allegations of 
     waste, fraud, abuse, or mismanagement and the nature and 
     extent to which corrective action is taken against those in 
     the National Guard who retaliate against such members or 
     employees.
       (b) Secretary of Defense Report on Different Army and Air 
     Force Procedures.--Not later than six months after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report on the differing Army and Air 
     Force policies for taking adverse administrative actions 
     against National Guard officers in a State status. The report 
     shall include the Secretary's determination as to whether 
     changes should be made in those policies, especially through 
     requiring the Air Force to adopt the same policy as the Army 
     for such administrative actions.

     SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN 
                   FEDERAL SERVICE.

       (a) Manner of Prescribing Punishments.--Section 326 of 
     title 32, United States Code, is amended by adding at the end 
     the following new sentence: ``Punishments shall be as 
     provided by the laws of the respective States and 
     Territories, Puerto Rico, and the District of Columbia.''.
       (b) Convening Authority.--Section 327 of such title is 
     amended to read as follows:

     ``Sec. 327. Courts-martial of National Guard not in Federal 
       service: convening authority

       ``(a) In the National Guard not in Federal service, 
     general, special, and summary courts-martial may be convened 
     as provided by the laws of the States and Territories, Puerto 
     Rico, and the District of Columbia.
       ``(b) In addition to convening authorities as provided 
     under subsection (a), in the National Guard not in Federal 
     service--
       ``(1) general courts-martial may be convened by the 
     President;
       ``(2) special courts-martial may be convened--
       ``(A) by the commanding officer of a garrison, fort, post, 
     camp, air base, auxiliary air base, or other place where 
     troops are on duty; or
       ``(B) by the commanding officer of a division, brigade, 
     regiment, wing, group, detached battalion, separate squadron, 
     or other detached command; and
       ``(3) summary courts-martial may be convened--
       ``(A) by the commanding officer of a garrison, fort, post, 
     camp, air base, auxiliary air base, or other place where 
     troops are on duty; or
       ``(B) by the commanding officer of a division, brigade, 
     regiment, wing, group, detached battalion, detached squadron, 
     detached company, or other detachment.''.
       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 3 of such title is 
     amended to read as follows:

``327. Courts-martial of National Guard not in Federal service: 
              convening authority.''.

       (c) Repeal of Superseded and Obsolete Provisions.--
       (1) Sections 328, 329, 330, 331, 332, and 333 of title 32, 
     United States Code, are repealed.
       (2) The table of sections at the beginning of chapter 3 of 
     such title is amended by striking the items relating to 
     sections 328, 329, 330, 331, 332, and 333.
       (d) Preparation of Model State Code of Military Justice and 
     Model State Manual for Courts-Martial.--(1) The Secretary of 
     Defense shall prepare, for consideration for enactment by the 
     States, a model State code of military justice and a model 
     State manual of courts-martial for use with respect to the 
     National Guard not in Federal service. Both such models shall 
     be consistent with the recommendations contained in the 
     report, issued in 1998, by the panel known as the Department 
     of Defense Panel to Study Military Justice in the National 
     Guard not in Federal Service.
       (2) The Secretary shall ensure that adequate support for 
     the preparation of such model State code and model State 
     manual (including the detailing of attorneys and other staff) 
     is provided by the General Counsel of the Department of 
     Defense, the Secretary of the Army, the Secretary of the Air 
     Force, and the Chief of the National Guard Bureau.
       (3) If the amounts available to the Chief of the National 
     Guard Bureau are not adequate for the costs required to 
     provide support under paragraph (2) (including costs for 
     increased pay when members of the National

[[Page H5558]]

     Guard are ordered to active duty, cost of detailed attorneys 
     and other staff, allowances, and travel expenses), the 
     Secretary shall, upon request of the Chief of the Bureau, 
     provide such additional amounts as are necessary.
       (4) Not later than one year after the date of the enactment 
     of this Act, the Secretary shall submit to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report on the 
     implementation of this subsection. The report shall include 
     proposals in final form of both the model State code and the 
     model State manual required by paragraph (1) and shall set 
     forth the efforts being made to present those proposals to 
     the States for their consideration for enactment.
       (5) In this subsection, the term ``State'' includes the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     Virgin Islands, and Guam.

     SEC. 513. MATCHING FUNDS REQUIREMENTS UNDER NATIONAL GUARD 
                   YOUTH CHALLENGE PROGRAM.

       Effective October 1, 2002, subsection (d) of section 509 of 
     title 32, United States Code, is amended to read as follows:
       ``(d) Matching Funds Required.--The amount of assistance 
     provided under this section to a State program of the 
     National Guard Challenge Program for a fiscal year may not 
     exceed 75 percent of the costs of operating the State program 
     during that fiscal year.''.

         Subtitle C--Reserve Component Officer Personnel Policy

     SEC. 521. EXEMPTION FROM ACTIVE STATUS STRENGTH LIMITATION 
                   FOR RESERVE COMPONENT GENERAL AND FLAG OFFICERS 
                   SERVING ON ACTIVE DUTY IN CERTAIN JOINT DUTY 
                   ASSIGNMENTS DESIGNATED BY THE CHAIRMAN OF THE 
                   JOINT CHIEFS OF STAFF.

       Section 12004 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(f)(1) A general or flag officer who is on active duty 
     but who is not counted under section 526(a) of this title by 
     reason of section 526(b)(2)(B) of this title shall also be 
     excluded from being counted under subsection (a).
       ``(2) This subsection shall cease to be effective on the 
     date specified in section 526(b)(3) of this title.''.

     SEC. 522. ELIGIBILITY FOR CONSIDERATION FOR PROMOTION TO 
                   GRADE OF MAJOR GENERAL FOR CERTAIN RESERVE 
                   COMPONENT BRIGADIER GENERALS WHO DO NOT 
                   OTHERWISE QUALIFY FOR CONSIDERATION FOR 
                   PROMOTION UNDER THE ONE-YEAR RULE.

       Section 14301(g) of title 10, United States Code, is 
     amended to read as follows:
       ``(g) Brigadier Generals.--(1) An officer who is a reserve 
     component brigadier general of the Army or the Air Force who 
     is not eligible for consideration for promotion under 
     subsection (a) because the officer is not on the reserve 
     active status list (as required by paragraph (1) of that 
     subsection for such eligibility) is nevertheless eligible for 
     consideration for promotion to the grade of major general by 
     a promotion board convened under section 14101(a) of this 
     title if--
       ``(A) as of the date of the convening of the promotion 
     board, the officer has been in an inactive status for less 
     than one year; and
       ``(B) immediately before the date of the officer's most 
     recent transfer to an inactive status, the officer had 
     continuously served on the reserve active status list or the 
     active-duty list (or a combination of the reserve active 
     status list and the active-duty list) for at least one year.
       ``(2) An officer who is a reserve component brigadier 
     general of the Army or the Air Force who is on the reserve 
     active status list but who is not eligible for consideration 
     for promotion under subsection (a) because the officer's 
     service does not meet the one-year-of-continuous-service 
     requirement under paragraph (2) of that subsection is 
     nevertheless eligible for consideration for promotion to the 
     grade of major general by a promotion board convened under 
     section 14101(a) of this title if--
       ``(A) the officer was transferred from an inactive status 
     to the reserve active status list during the one-year period 
     preceding the date of the convening of the promotion board;
       ``(B) immediately before the date of the officer's most 
     recent transfer to an active status, the officer had been in 
     an inactive status for less than one year; and
       ``(C) immediately before the date of the officer's most 
     recent transfer to an inactive status, the officer had 
     continuously served for at least one year on the reserve 
     active status list or the active-duty list (or a combination 
     of the reserve active status list and the active-duty 
     list).''.

     SEC. 523. RETENTION OF PROMOTION ELIGIBILITY FOR RESERVE 
                   COMPONENT GENERAL AND FLAG OFFICERS TRANSFERRED 
                   TO AN INACTIVE STATUS.

       Section 14317 of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(f) Effect of Transfer of Officers in Pay Grade O-7 to 
     Inactive Status.--Notwithstanding subsection (a), if a 
     reserve officer on the active-status list in the grade of 
     brigadier general or rear admiral (lower half) is transferred 
     to an inactive status after having been recommended for 
     promotion to the grade of major general or rear admiral under 
     this chapter, or after having been found qualified for 
     Federal recognition in the grade of major general under title 
     32, but before being promoted, the officer shall retain 
     promotion eligibility and, if otherwise qualified, may be 
     promoted to the higher grade after returning to an active 
     status.''.

     SEC. 524. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL 
                   DEFERMENT OF MANDATORY RETIREMENT OR SEPARATION 
                   FOR RESERVE OFFICERS.

       (a) Deferment of Retirement or Separation for Medical 
     Reasons.--Chapter 1407 of title 10, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 14519. Deferment of retirement or separation for 
       medical reasons

       ``(a) If the Secretary of the military department concerned 
     determines that the evaluation of the physical condition of a 
     Reserve officer and determination of the officer's 
     entitlement to retirement or separation for physical 
     disability require hospitalization or medical observation and 
     that such hospitalization or medical observation cannot be 
     completed with confidence in a manner consistent with the 
     officer's well-being before the date on which the officer 
     would otherwise be required to be separated, retired, or 
     transferred to the Retired Reserve under this title, the 
     Secretary may defer the separation, retirement, or transfer 
     of the officer under this title.
       ``(b) A deferral under subsection (a) of separation, 
     retirement, or transfer to the Retired Reserve may not extend 
     for more than 30 days after completion of the evaluation 
     requiring hospitalization or medical observation.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``14519. Deferment of retirement or separation for medical reasons.''.

                   Subtitle D--Education and Training

     SEC. 531. AUTHORITY FOR PHASED INCREASE TO 4,400 IN 
                   AUTHORIZED STRENGTHS FOR THE SERVICE ACADEMIES.

       (a) Military Academy.--Section 4342 of title 10, United 
     States Code, is amended--
       (1) in subsection (a), by inserting before the period at 
     the end of the first sentence the following: ``or such higher 
     number as may be prescribed by the Secretary of the Army 
     under subsection (j)''; and
       (2) by adding at the end the following new subsection:
       ``(j)(1) Beginning with the 2003-2004 academic year, the 
     Secretary of the Army may prescribe annual increases in the 
     cadet strength limit in effect under subsection (a). For any 
     academic year, any such increase shall be by no more than 100 
     cadets or such lesser number as applies under paragraph (3) 
     for that year. Such annual increases may be prescribed until 
     the cadet strength limit is 4,400. However, no increase may 
     be prescribed for any academic year after the 2007-2008 
     academic year.
       ``(2) Any increase in the cadet strength limit under 
     paragraph (1) with respect to an academic year shall be 
     prescribed not later than the date on which the budget of the 
     President is submitted to Congress under section 1105 of 
     title 31 for the fiscal year beginning in the same year as 
     the year in which that academic year begins. Whenever the 
     Secretary prescribes such an increase, the Secretary shall 
     submit to Congress a notice in writing of the increase. The 
     notice shall state the amount of the increase in the cadet 
     strength limit and the new cadet strength limit, as so 
     increased, and the amount of the increase in Senior Army 
     Reserve Officers' Training Corps enrollment under each of 
     sections 2104 and 2107 of this title.
       ``(3) The amount of an increase under paragraph (1) in the 
     cadet strength limit for an academic year may not exceed the 
     increase (if any) for the preceding academic year in the 
     total number of cadets enrolled in the Army Senior Reserve 
     Officers' Training Corps program under chapter 103 of this 
     title who have entered into an agreement under section 2104 
     or 2107 of this title.
       ``(4) In this subsection, the term `cadet strength limit' 
     means the authorized maximum strength of the Corps of Cadets 
     of the Academy.''.
       (b) Naval Academy.--Section 6954 of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by inserting before the period at 
     the end of the first sentence the following: ``or such higher 
     number as may be prescribed by the Secretary of the Navy 
     under subsection (h)''; and
       (2) by adding at the end the following new subsection:
       ``(h)(1) Beginning with the 2003-2004 academic year, the 
     Secretary of the Navy may prescribe annual increases in the 
     midshipmen strength limit in effect under subsection (a). For 
     any academic year, any such increase shall be by no more than 
     100 midshipmen or such lesser number as applies under 
     paragraph (3) for that year. Such annual increases may be 
     prescribed until the midshipmen strength limit is 4,400. 
     However, no increase may be prescribed for any academic year 
     after the 2007-2008 academic year.
       ``(2) Any increase in the midshipmen strength limit under 
     paragraph (1) with respect to an academic year shall be 
     prescribed not later than the date on which the budget of the 
     President is submitted to Congress under section 1105 of 
     title 31 for the fiscal year beginning in the same year as 
     the year in which that academic year begins. Whenever the 
     Secretary prescribes such an increase, the Secretary shall 
     submit to Congress a notice in writing of the increase. The

[[Page H5559]]

     notice shall state the amount of the increase in the 
     midshipmen strength limit and the new midshipmen strength 
     limit, as so increased, and the amount of the increase in 
     Senior Navy Reserve Officers' Training Corps enrollment under 
     each of sections 2104 and 2107 of this title.
       ``(3) The amount of an increase under paragraph (1) in the 
     midshipmen strength limit for an academic year may not exceed 
     the increase (if any) for the preceding academic year in the 
     total number of midshipmen enrolled in the Navy Senior 
     Reserve Officers' Training Corps program under chapter 103 of 
     this title who have entered into an agreement under section 
     2104 or 2107 of this title.
       ``(4) In this subsection, the term `midshipmen strength 
     limit' means the authorized maximum strength of the Brigade 
     of Midshipmen.''.
       (c) Air Force Academy.--Section 9342 of title 10, United 
     States Code, is amended--
       (1) in subsection (a), by inserting before the period at 
     the end of the first sentence the following: ``or such higher 
     number as may be prescribed by the Secretary of the Air Force 
     under subsection (j)''; and
       (2) by adding at the end the following new subsection:
       ``(j)(1) Beginning with the 2003-2004 academic year, the 
     Secretary of the Air Force may prescribe annual increases in 
     the cadet strength limit in effect under subsection (a). For 
     any academic year, any such increase shall be by no more than 
     100 cadets or such lesser number as applies under paragraph 
     (3) for that year. Such annual increases may be prescribed 
     until the cadet strength limit is 4,400. However, no increase 
     may be prescribed for any academic year after the 2007-2008 
     academic year.
       ``(2) Any increase in the cadet strength limit under 
     paragraph (1) with respect to an academic year shall be 
     prescribed not later than the date on which the budget of the 
     President is submitted to Congress under sections 1105 of 
     title 31 for the fiscal year beginning in the same year as 
     the year in which that academic year begins. Whenever the 
     Secretary prescribes such an increase, the Secretary shall 
     submit to Congress a notice in writing of the increase. The 
     notice shall state the amount of the increase in the cadet 
     strength limit and the new cadet strength limit, as so 
     increased, and the amount of the increase in Senior Air Force 
     Reserve Officers' Training Corps enrollment under each of 
     sections 2104 and 2107 of this title.
       ``(3) The amount of an increase under paragraph (1) in the 
     cadet strength limit for an academic year may not exceed the 
     increase (if any) for the preceding academic year in the 
     total number of cadets enrolled in the Air Force Senior 
     Reserve Officers' Training Corps program under chapter 103 of 
     this title who have entered into an agreement under section 
     2104 or 2107 of this title.
       ``(4) In this subsection, the term `cadet strength limit' 
     means the authorized maximum strength of Air Force Cadets of 
     the Academy.''.
       (d) Target for Increases in Number of ROTC Scholarship 
     Participants.--Section 2107 of such title is amended by 
     adding at the end the following new subsection:
       ``(i) The Secretary of each military department shall seek 
     to achieve an increase in the number of agreements entered 
     into under this section so as to achieve an increase, by the 
     2006-2007 academic year, of not less than 400 in the number 
     of cadets or midshipmen, as the case may be, enrolled under 
     this section, compared to such number enrolled for the 2002-
     2003 academic year. In the case of the Secretary of the Navy, 
     the Secretary shall seek to ensure that not less than one-
     third of such increase in agreements under this section are 
     with students enrolled (or seeking to enroll) in programs of 
     study leading to a baccalaureate degree in nuclear 
     engineering or another appropriate technical, scientific, or 
     engineering field of study.''.
       (e) Repeal of Limit on Number of ROTC Scholarships.--
     Section 2107 of such title is further amended by striking the 
     first sentence of subsection (h)(1).
       (f) Repeal of Obsolete Language.--Section 4342(i) of such 
     title is amended by striking ``(beginning with the 2001-2002 
     academic year)''.

     SEC. 532. ENHANCEMENT OF RESERVE COMPONENT DELAYED TRAINING 
                   PROGRAM.

       (a) Increase in Time Following Enlistment for Commencement 
     of Initial Period of Active Duty for Training.--Section 
     12103(d) of title 10, United States Code, is amended by 
     striking ``270 days'' in the last sentence and inserting 
     ``one year''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to enlistments under section 
     12103(d) of title 10, United States Code, after the end of 
     the 90-day period beginning on the date of the enactment of 
     this Act.
       (c) Transition.--In the case of a person who enlisted under 
     section 12103(d) of title 10, United States Code, before the 
     date of the enactment of this Act and who as of such date has 
     not commenced the required initial period of active duty for 
     training under that section, the amendment made by subsection 
     (a) may be applied to that person, but only with the 
     agreement of that person and the Secretary concerned.

     SEC. 533. PREPARATION FOR, PARTICIPATION IN, AND CONDUCT OF 
                   ATHLETIC COMPETITIONS BY THE NATIONAL GUARD AND 
                   MEMBERS OF THE NATIONAL GUARD.

       (a) Athletic and Small Arms Competitions.--Section 504 of 
     title 32, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(c) Conduct of and Participation in Certain 
     Competitions.--(1) Under regulations prescribed by the 
     Secretary of Defense, members and units of the National Guard 
     may conduct and compete in a qualifying athletic competition 
     or a small arms competition so long as--
       ``(A) the conduct of, or participation in, the competition 
     does not adversely affect the quality of training or 
     otherwise interfere with the ability of a member or unit of 
     the National Guard to perform the military functions of the 
     member or unit;
       ``(B) National Guard personnel will enhance their military 
     skills as a result of conducting or participating in the 
     competition; and
       ``(C) the conduct of or participation in the competition 
     will not result in a significant increase in National Guard 
     costs.
       ``(2) Facilities and equipment of the National Guard, 
     including military property and vehicles described in section 
     508(c) of this title, may be used in connection with the 
     conduct of or participation in a qualifying athletic 
     competition or a small arms competition under paragraph 
     (1).''.
       (b) Other Matters.--Such section is further amended by 
     adding after subsection (c), as added by subsection (a) of 
     this section, the following new subsections:
       ``(d) Availability of Funds.--(1) Subject to paragraph (2) 
     and such limitations as may be enacted in appropriations Acts 
     and such regulations as the Secretary of Defense may 
     prescribe, amounts appropriated for the National Guard may be 
     used to cover--
       ``(A) the costs of conducting or participating in a 
     qualifying athletic competition or a small arms competition 
     under subsection (c); and
       ``(B) the expenses of members of the National Guard under 
     subsection (a)(3), including expenses of attendance and 
     participation fees, travel, per diem, clothing, equipment, 
     and related expenses.
       ``(2) Not more than $2,500,000 may be obligated or expended 
     in any fiscal year under subsection (c).
       ``(e) Qualifying Athletic Competition Defined.--In this 
     section, the term `qualifying athletic competition' means a 
     competition in athletic events that require skills relevant 
     to military duties or involve aspects of physical fitness 
     that are evaluated by the armed forces in determining whether 
     a member of the National Guard is fit for military duty.''.
       (c) Stylistic Amendments.--Such section is further 
     amended--
       (1) in subsection (a), by inserting ``Authorized 
     Activities.--'' after ``(a)''; and
       (2) in subsection (b), by inserting ``Authorized 
     Locations.--'' after ``(b)''.
       (d) Conforming and Clerical Amendments.--(1) Subsection (a) 
     of such section is amended--
       (A) in paragraph (1), by inserting ``and'' after the 
     semicolon;
       (B) in paragraph (2), by striking ``; or'' and inserting a 
     period; and
       (C) by striking paragraph (3).
       (2) The heading of such section is amended to read as 
     follows:

     ``Sec. 504. National Guard schools; small arms competitions; 
       athletic competitions''.

       (3) The item relating to section 504 in the table of 
     sections at the beginning of chapter 5 of title 32, United 
     States Code, is amended to read as follows:

``504. National Guard schools; small arms competitions; athletic 
              competitions.''.

                   Subtitle E--Decorations and Awards

     SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN 
                   DECORATIONS TO CERTAIN PERSONS.

       (a) Waiver.--Any limitation established by law or policy 
     for the time within which a recommendation for the award of a 
     military decoration or award must be submitted shall not 
     apply to awards of decorations described in this section, the 
     award of each such decoration having been determined by the 
     Secretary concerned to be warranted in accordance with 
     section 1130 of title 10, United States Code.
       (b) Distinguished Flying Cross.--Subsection (a) applies to 
     the award of the Distinguished Flying Cross (including 
     multiple awards to the same individual) in the case of each 
     individual concerning whom the Secretary of the military 
     department concerned (or a designated official acting on 
     behalf of the Secretary of the military department concerned) 
     submitted to the Committee on Armed Services of the House of 
     Representatives and the Committee on Armed Services of the 
     Senate, during the period beginning on December 28, 2001, and 
     ending on the day before the date of the enactment of this 
     Act, a notice as provided in section 1130(b) of title 10, 
     United States Code, that the award of the Distinguished 
     Flying Cross to that individual is warranted and that a 
     waiver of time restrictions prescribed by law for 
     recommendation for such award is recommended.

     SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES 
                   EXPEDITIONARY MEDAL AWARDED FOR OPERATION 
                   FREQUENT WIND TO VIETNAM SERVICE MEDAL.

       (a) In General.--The Secretary of the military department 
     concerned shall, upon the application of an individual who is 
     an eligible Vietnam evacuation veteran, award that individual 
     the Vietnam Service Medal,

[[Page H5560]]

     notwithstanding any otherwise applicable requirements for the 
     award of that medal. Any such award shall be made in lieu of 
     the Armed Forces Expeditionary Medal awarded the individual 
     for participation in Operation Frequent Wind.
       (b) Eligible Vietnam Evacuation Veteran.--For purposes of 
     this section, the term ``eligible Vietnam evacuation 
     veteran'' means a member or former member of the Armed Forces 
     who was awarded the Armed Forces Expeditionary Medal for 
     participation in military operations designated as Operation 
     Frequent Wind arising from the evacuation of Vietnam on April 
     29 and 30, 1975.

                   Subtitle F--Administrative Matters

     SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRISONER OF WAR/
                   MISSING PERSONNEL OFFICE.

       (a) Requirement for Staffing and Funding at Levels Required 
     for Performance of Full Range of Missions.--Subsection (a) of 
     section 1501 of title 10, United States Code, is amended by 
     adding at the end the following new paragraph:
       ``(5)(A) The Secretary of Defense shall ensure that the 
     office is provided sufficient military and civilian personnel 
     levels, and sufficient funding, to enable the office to fully 
     perform its complete range of missions. The Secretary shall 
     ensure that Department of Defense programming, planning, and 
     budgeting procedures are structured so as to ensure 
     compliance with the preceding sentence for each fiscal year.
       ``(B) For any fiscal year, the number of military and 
     civilian personnel assigned or detailed to the office may not 
     be less than the number requested in the President's budget 
     for fiscal year 2003, unless a level below such number is 
     expressly required by law.
       ``(C) For any fiscal year, the level of funding allocated 
     to the office within the Department of Defense may not be 
     below the level requested for such purposes in the 
     President's budget for fiscal year 2003, unless such a level 
     of funding is expressly required by law.''.
       (b) Name of Office.--Such subsection is further amended by 
     inserting after the first sentence of paragraph (1) the 
     following new sentence: ``Such office shall be known as the 
     Defense Prisoner of War/Missing Personnel Office.''.

     SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PERSONNEL OF 
                   AGENCIES RESPONSIBLE FOR REVIEW AND CORRECTION 
                   OF MILITARY RECORDS.

       (a) In General.--Chapter 79 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1559. Personnel limitation

       ``(a) Limitation.--During fiscal years 2003, 2004, and 
     2005, the Secretary of a military department may not carry 
     out any reduction in the number of military and civilian 
     personnel assigned to duty with the service review agency for 
     that military department below the baseline number for that 
     agency until--
       ``(1) the Secretary submits to Congress a report that--
       ``(A) describes the reduction proposed to be made;
       ``(B) provides the Secretary's rationale for that 
     reduction; and
       ``(C) specifies the number of such personnel that would be 
     assigned to duty with that agency after the reduction; and
       ``(2) a period of 90 days has elapsed after the date on 
     which the report is submitted.
       ``(b) Baseline Number.--The baseline number for a service 
     review agency under this section is--
       ``(1) for purposes of the first report with respect to a 
     service review agency under this section, the number of 
     military and civilian personnel assigned to duty with that 
     agency as of January 1, 2002; and
       ``(2) for purposes of any subsequent report with respect to 
     a service review agency under this section, the number of 
     such personnel specified in the most recent report with 
     respect to that agency under this section.
       ``(c) Service Review Agency Defined.--In this section, the 
     term `service review agency' means--
       ``(1) with respect to the Department of the Army, the Army 
     Review Boards Agency;
       ``(2) with respect to the Department of the Navy, the Board 
     for Correction of Naval Records; and
       ``(3) with respect to the Department of the Air Force, the 
     Air Force Review Boards Agency.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1559. Personnel limitation.''.

     SEC. 553. DEPARTMENT OF DEFENSE SUPPORT FOR PERSONS 
                   PARTICIPATING IN MILITARY FUNERAL HONORS 
                   DETAILS.

       Section 1491(d) of title 10, United States Code, is 
     amended--
       (1) by striking ``To provide a'' after ``Support.--'' and 
     inserting ``(1) To support a'';
       (2) by redesignating paragraph (1) as subparagraph (A) and 
     amending such subparagraph, as so redesignated, to read as 
     follows:
       ``(A) For a person who participates in a funeral honors 
     detail (other than a person who is a member of the armed 
     forces not in a retired status or an employee of the United 
     States), either transportation (or reimbursement for 
     transportation) and expenses or the daily stipend prescribed 
     under paragraph (2).'';
       (3) by redesignating paragraph (2) as subparagraph (B) and 
     in that subparagraph--
       (A) by striking ``Materiel, equipment, and training for'' 
     and inserting ``For''; and
       (B) by inserting before the period at the end ``and for 
     members of the armed forces in a retired status, materiel, 
     equipment, and training'';
       (4) by redesignating paragraph (3) as subparagraph (C) and 
     in that subparagraph--
       (A) by striking ``Articles of clothing for'' and inserting 
     ``For''; and
       (B) by inserting ``, articles of clothing'' after 
     ``subsection (b)(2)''; and
       (5) by adding at the end the following new paragraphs:
       ``(2) The Secretary of Defense shall prescribe annually a 
     flat rate daily stipend for purposes of paragraph (1)(A). 
     Such stipend shall be set at a rate so as to encompass 
     typical costs for transportation and other miscellaneous 
     expenses for persons participating in funeral honors details 
     who are members of the armed forces in a retired status and 
     other persons are not members of the armed forces or 
     employees of the United States.
       ``(3) A stipend paid under this subsection to a member of 
     the armed forces in a retired status is in addition to any 
     compensation to which the member is entitled under section 
     435(a)(2) of title 37 and any other compensation to which the 
     member may be entitled.''.

     SEC. 554. AUTHORITY FOR USE OF VOLUNTEERS AS PROCTORS FOR 
                   ADMINISTRATION OF ARMED SERVICES VOCATIONAL 
                   APTITUDE BATTERY TEST.

       Section 1588(a) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(6) Voluntary services as a proctor for administration to 
     secondary school students of the test known as the `Armed 
     Services Vocational Aptitude Battery'.''.

     SEC. 555. ANNUAL REPORT ON STATUS OF FEMALE MEMBERS OF THE 
                   ARMED FORCES.

       (a) In General.--Chapter 23 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 488. Status of female members of the armed forces: 
       annual report

       ``(a) Annual Report.--The Secretary of Defense shall submit 
     to Congress an annual report on the status of female members 
     of the armed forces. Information in the report shall be shown 
     for the Department of Defense as a whole and separately for 
     each of the Army, Navy, Air Force, and Marine Corps.
       ``(b) Matters To Be Included.--Each report under subsection 
     (a) shall include, at a minimum, the following information 
     with respect to female members:
       ``(1) Access to health care.
       ``(2) Positions open.
       ``(3) Assignment policies.
       ``(4) Joint spouse assignments.
       ``(5) Deployment availability rates.
       ``(6) Promotion and retention rates.
       ``(7) Assignments in nontraditional fields.
       ``(8) Assignments to command positions.
       ``(9) Selection for service schools.
       ``(10) Sexual harassment.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``488. Status of female members of the armed forces: annual report.''.

                          Subtitle G--Benefits

     SEC. 561. VOLUNTARY LEAVE SHARING PROGRAM FOR MEMBERS OF THE 
                   ARMED FORCES.

       (a) In General.--(1) Chapter 40 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 709. Voluntary transfers of leave

       ``(a) Program.--The Secretary concerned shall, by 
     regulation, establish a program under which leave accrued by 
     a member of an armed force may be transferred to another 
     member of the same armed force who requires additional leave 
     because of a qualifying emergency. Any such transfer of leave 
     may be made only upon the voluntary written application of 
     the member whose leave is to be transferred.
       ``(b) Approval of Commanding Officer Required.--Any 
     transfer of leave under a program under this section may only 
     be made with the approval of the commanding officer of the 
     leave donor and the leave recipient.
       ``(c) Qualifying Emergency.--In this section, the term 
     `qualifying emergency', with respect to a member of the armed 
     forces, means a circumstance that--
       ``(1) is likely to require the prolonged absence of the 
     member from duty; and
       ``(2) is due to--
       ``(A) a medical condition of a member of the immediate 
     family of the member; or
       ``(B) any other hardship that the Secretary concerned 
     determines appropriate for purposes of this section.
       ``(d) Military Department Regulations.--Regulations 
     prescribed under this section by the Secretaries of the 
     military department shall be as uniform as practicable and 
     shall be subject to approval by the Secretary of Defense.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``709. Voluntary transfers of leave.''.

       (b) Deadline for Implementing Regulations.--Regulations to 
     implement section 709 of title 10, United States Code, as 
     added by subsection (a), shall be prescribed not

[[Page H5561]]

     later than six months after the date of the enactment of this 
     Act.

     SEC. 562. ENHANCED FLEXIBILITY IN MEDICAL LOAN REPAYMENT 
                   PROGRAM.

       (a) Eligible Persons.--Subsection (d) of section 2173 of 
     title 10, United States Code, is amended by striking 
     ``Participants'' and all that follows through ``and 
     students'' and inserting ``Students''.
       (b) Loan Repayment Amounts.--Subsection (e)(2) of such 
     section is amended by striking the last sentence.

     SEC. 563. EXPANSION OF OVERSEAS TOUR EXTENSION BENEFITS.

       Section 705(b)(2) of title 10, United States Code, is 
     amended--
       (1) by striking ``recuperative'' and inserting 
     ``recuperation''; and
       (2) by inserting before the period at the end the 
     following: ``, or to an alternate location at a cost not to 
     exceed the cost of transportation to the nearest port in the 
     48 contiguous States, and return''.

     SEC. 564. VEHICLE STORAGE IN LIEU OF TRANSPORTATION WHEN 
                   MEMBER IS ORDERED TO A NONFOREIGN DUTY STATION 
                   OUTSIDE CONTINENTAL UNITED STATES.

       (a) Storage Costs Authorized.--Subsection (b) of section 
     2634 of title 10, United States Code, is amended by striking 
     paragraphs (1) and (2) and inserting the following:
       ``(b)(1) When a member receives a vehicle storage 
     qualifying order, the member may elect to have a motor 
     vehicle described in subsection (a) stored at the expense of 
     the United States at a location approved by the Secretary 
     concerned. In the case of a vehicle storage qualifying order 
     that is to make a change of permanent station, such storage 
     is in lieu of transportation authorized by subsection (a).
       ``(2) In this subsection, the term `vehicle storage 
     qualifying order' means any of the following:
       ``(A) An order to make a change of permanent station to a 
     foreign country in a case in which the laws, regulations, or 
     other restrictions imposed by the foreign country or by the 
     United States either--
       ``(i) preclude entry of a motor vehicle described in 
     subsection (a) into that country; or
       ``(ii) would require extensive modification of the vehicle 
     as a condition to entry.
       ``(B) An order to make a change of permanent station to a 
     nonforeign area outside the continental United States in a 
     case in which the laws, regulations, or other restrictions 
     imposed by that area or by the United States either--
       ``(i) preclude entry of a motor vehicle described in 
     subsection (a) into that area; or
       ``(ii) would require extensive modification of the vehicle 
     as a condition to entry.
       ``(C) An order under which a member is transferred or 
     assigned in connection with a contingency operation to duty 
     at a location other than the permanent station of the member 
     for a period of more than 30 consecutive days but which is 
     not considered a change of permanent station.''.
       (b) Nonforeign Area Outside the Continental United States 
     Defined.--Subsection (h) of such section is amended by adding 
     at the end the following new paragraph:
       ``(3) The term `nonforeign area outside the continental 
     United States' means any of the following: the States of 
     Alaska and Hawaii, the Commonwealths of Puerto Rico and the 
     Northern Mariana Islands, and any possession of the United 
     States.''.
       (c) Effective Date.--The amendments made by this section 
     apply to orders to make a change of permanent station to a 
     nonforeign area outside the continental United States (as 
     such term is defined in subsection (h)(3) of section 2634 of 
     title 10, United States Code, as added by subsection (b)) 
     that are issued on or after the date of the enactment of this 
     Act.

                  Subtitle H--Military Justice Matters

     SEC. 571. RIGHT OF CONVICTED ACCUSED TO REQUEST SENTENCING BY 
                   MILITARY JUDGE.

       (a) Sentencing by Judge.--(1) Chapter 47 of title 10, 
     United States Code (the Uniform Code of Military Justice), is 
     amended by inserting after section 852 (article 52) the 
     following new section:

     ``Sec. 852a. Art. 52a. Right of accused to request sentencing 
       by military judge rather than by members

       ``(a) In the case of an accused convicted of an offense by 
     a court-martial composed of a military judge and members, the 
     sentence shall be tried before and adjudged by the military 
     judge rather than the members if, after the findings are 
     announced and before evidence in the sentencing proceeding is 
     introduced, the accused, knowing the identity of the military 
     judge and after consultation with defense counsel, requests 
     orally on the record or in writing that the sentence be tried 
     before and adjudged by the military judge rather than the 
     members.
       ``(b) This section shall not apply with respect to an 
     offense for which the death penalty may be adjudged unless 
     the case has been previously referred to trial as a 
     noncapital case.''.
       (2) The table of sections at the beginning of subchapter 
     VII of such chapter is amended by inserting after the item 
     relating to section 852 (article 52) the following new item:

``852a. 52a. Right of accused to request sentencing by military judge 
              rather than by members.''.

       (b) Effective Date.--Section 852a of title 10, United 
     States Code (article 52a of the Uniform Code of Military 
     Justice), as added by subsection (a), shall apply with 
     respect to offenses committed on or after January 1, 2003.

     SEC. 572. REPORT ON DESIRABILITY AND FEASIBILITY OF 
                   CONSOLIDATING SEPARATE COURSES OF BASIC 
                   INSTRUCTION FOR JUDGE ADVOCATES.

       Not later than February 1, 2003, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on the desirability and feasibility 
     of consolidating the separate Army, Navy, and Air Force 
     courses of basic instruction for judge advocates into a 
     single course to be conducted at a single location. The 
     report shall include--
       (1) an assessment of the advantages and disadvantages of 
     such a consolidation;
       (2) a recommendation as to whether such a consolidation is 
     desirable and feasible; and
       (3) any proposal for legislative action that the Secretary 
     considers appropriate for carrying out such a consolidation.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

     SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.

       (a) Waiver of Section 1009 Adjustment.--The adjustment to 
     become effective during fiscal year 2003 required by section 
     1009 of title 37, United States Code, in the rates of monthly 
     basic pay authorized members of the uniformed services shall 
     not be made.
       (b) Increase in Basic Pay.--Effective on January 1, 2003, 
     the rates of monthly basic pay for members of the uniformed 
     services within each pay grade are as follows:
       

                        COMMISSIONED OFFICERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10 \2\........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,474.50   7,719.30   7,881.60   7,927.20    8,129.40
O-7.............   6,210.90   6,499.20   6,633.00   6,739.20    6,930.90
O-6.............   4,603.20   5,057.10   5,388.90   5,388.90    5,409.60
O-5.............   3,837.60   4,323.00   4,622.40   4,678.50    4,864.80
O-4.............   3,311.10   3,832.80   4,088.70   4,145.70    4,383.00
O-3 \3\.........   2,911.20   3,300.30   3,562.20   3,883.50    4,069.50
O-2 \3\.........   2,515.20   2,864.70   3,299.40   3,410.70    3,481.20
O-1 \3\.........   2,183.70   2,272.50   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10 \2\........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,468.70   8,547.30   8,868.90   8,961.30    9,238.20
O-7.............   7,120.80   7,340.40   7,559.40   7,779.00    8,468.70
O-6.............   5,641.20   5,672.10   5,672.10   5,994.60    6,564.30
O-5.............   4,977.00   5,222.70   5,403.00   5,635.50    5,991.90
O-4.............   4,637.70   4,954.50   5,201.40   5,372.70    5,471.10
O-3 \3\.........   4,273.50   4,405.80   4,623.30   4,736.10    4,736.10
O-2 \3\.........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20

[[Page H5562]]


O-1 \3\.........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10 \2\........      $0.00  $12,077.7  $12,137.1  $12,389.4  $12,829.20
                                     0          0          0
O-9.............       0.00  10,563.60  10,715.70  10,935.60   11,319.60
O-8.............   9,639.00  10,008.90  10,255.80  10,255.80   10,255.80
O-7.............   9,051.30   9,051.30   9,051.30   9,051.30    9,096.90
O-6.............   6,898.80   7,233.30   7,423.50   7,616.10    7,989.90
O-5.............   6,161.70   6,329.10   6,519.60   6,519.60    6,519.60
O-4.............   5,528.40   5,528.40   5,528.40   5,528.40    5,528.40
O-3 \3\.........   4,736.10   4,736.10   4,736.10   4,736.10    4,736.10
O-2 \3\.........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1 \3\.........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades 0-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\ Subject to the preceding footnote, while serving as Chairman or Vice
  Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
  Chief of Naval Operations, Chief of Staff of the Air Force, Commandant
  of the Marine Corps, or Commandant of the Coast Guard, the rate of
  basic pay for this grade is $14,155.50, regardless of cumulative years
  of service computed under section 205 of title 37, United States Code.
\3\ This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,883.50   $4,069.50
O-2E............       0.00       0.00       0.00   3,410.70    3,481.20
O-1E............       0.00       0.00       0.00   2,746.80    2,933.70
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,273.50  $4,405.80  $4,623.30  $4,806.30   $4,911.00
O-2E............   3,591.90   3,778.80   3,923.40   4,031.10    4,031.10
O-1E............   3,042.00   3,152.70   3,261.60   3,410.70    3,410.70
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $5,054.40  $5,054.40  $5,054.40  $5,054.40   $5,054.40
O-2E............   4,031.10   4,031.10   4,031.10   4,031.10    4,031.10
O-1E............   3,410.70   3,410.70   3,410.70   3,410.70    3,410.70
------------------------------------------------------------------------


                          WARRANT OFFICERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,008.10   3,236.10   3,329.10   3,420.60   3,578.10
W-3..............   2,747.10   2,862.00   2,979.30   3,017.70   3,141.00
W-2..............   2,416.50   2,554.50   2,675.10   2,763.00   2,838.30
W-1..............   2,133.90   2,308.50   2,425.50   2,501.10   2,662.50
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,733.50   3,891.00   4,044.60   4,203.60   4,356.00
W-3..............   3,281.70   3,467.40   3,580.50   3,771.90   3,915.60
W-2..............   2,993.10   3,148.50   3,264.00   3,376.50   3,453.90
W-1..............   2,782.20   2,888.40   3,006.90   3,085.20   3,203.40
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $5,169.30  $5,346.60  $5,524.50  $5,703.30
W-4..............   4,512.00   4,664.40   4,822.50   4,978.20   5,137.50
W-3..............   4,058.40   4,201.50   4,266.30   4,407.00   4,548.00
W-2..............   3,579.90   3,705.90   3,831.00   3,957.30   3,957.30
W-1..............   3,320.70   3,409.50   3,409.50   3,409.50   3,409.50
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


                          ENLISTED MEMBERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9 \2\..........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,068.50   2,257.80   2,343.90   2,428.20   2,516.40
E-6..............   1,770.60   1,947.60   2,033.70   2,117.10   2,204.10
E-5..............   1,625.40   1,733.70   1,817.40   1,903.50   2,037.00
E-4..............   1,502.70   1,579.80   1,665.30   1,749.30   1,824.00
E-3..............   1,356.90   1,442.10   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............        \3\   1,150.80   1,150.80   1,150.80   1,150.80
                    1,150.80
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9 \2\..........      $0.00  $3,564.30  $3,645.00  $3,747.00  $3,867.00
E-8..............   2,975.40   3,061.20   3,141.30   3,237.60   3,342.00
E-7..............   2,667.90   2,753.40   2,838.30   2,990.40   3,066.30
E-6..............   2,400.90   2,477.40   2,562.30   2,636.70   2,663.10
E-5..............   2,151.90   2,236.80   2,283.30   2,283.30   2,283.30

[[Page H5563]]


E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9 \2\..........  $3,987.30  $4,180.80  $4,344.30  $4,506.30  $4,757.40
E-8..............   3,530.10   3,625.50   3,787.50   3,877.50   4,099.20
E-7..............   3,138.60   3,182.70   3,331.50   3,427.80   3,671.40
E-6..............   2,709.60   2,709.60   2,709.60   2,709.60   2,709.60
E-5..............   2,283.30   2,283.30   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, while serving as Sergeant Major
  of the Army, Master Chief Petty Officer of the Navy, Chief Master
  Sergeant of the Air Force, Sergeant Major of the Marine Corps, or
  Master Chief Petty Officer of the Coast Guard, basic pay for this
  grade is $5,732.70, regardless of cumulative years of service computed
  under section 205 of title 37, United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,064.70.

     SEC. 602. EXPANSION OF BASIC ALLOWANCE FOR HOUSING LOW-COST 
                   OR NO-COST MOVES AUTHORITY TO MEMBERS ASSIGNED 
                   TO DUTY OUTSIDE UNITED STATES.

       Section 403(c) of title 37, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(4) In the case of a member who is assigned to duty 
     outside of the United States, the location or the 
     circumstances of which make it necessary that the member be 
     reassigned under the conditions of low-cost or no-cost 
     permanent change of station or permanent change of 
     assignment, the member may be treated as if the member were 
     not reassigned if the Secretary concerned determines that it 
     would be inequitable to base the member's entitlement to, and 
     amount of, a basic allowance for housing on the cost of 
     housing in the area to which the member is reassigned.''.

           Subtitle B--Bonuses and Special and Incentive Pays

     SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                   AUTHORITIES FOR RESERVE FORCES.

       (a) Selected Reserve Reenlistment Bonus.--Section 308b(f ) 
     of title 37, United States Code, is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (c) Special Pay for Enlisted Members Assigned to Certain 
     High Priority Units.--Section 308d(c) of such title is 
     amended by striking ``December 31, 2002'' and inserting 
     ``December 31, 2003''.
       (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (e) Ready Reserve Enlistment and Reenlistment Bonus.--
     Section 308h(g) of such title is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (f) Prior Service Enlistment Bonus.--Section 308i(f ) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.

     SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
                   AUTHORITIES FOR CERTAIN HEALTH CARE 
                   PROFESSIONALS.

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking ``December 31, 2002'' and inserting ``December 31, 
     2003''.
       (b) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of such title is amended by striking ``January 1, 
     2003'' and inserting ``January 1, 2004''.
       (c) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2002'' and inserting ``December 31, 
     2003''.
       (d) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of such title is amended by striking ``December 
     31, 2002'' and inserting ``December 31, 2003''.
       (e) Special Pay for Selected Reserve Health Professionals 
     in Critically Short Wartime Specialties.--Section 302g(f ) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (f) Accession Bonus for Dental Officers.--Section 
     302h(a)(1) of such title is amended by striking ``December 
     31, 2002'' and inserting ``December 31, 2003''.

     SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS 
                   AUTHORITIES FOR NUCLEAR OFFICERS.

       (a) Special Pay for Nuclear-Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of title 37, United 
     States Code, is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
     of such title is amended by striking ``December 31, 2002'' 
     and inserting ``December 31, 2003''.

     SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY 
                   AUTHORITIES.

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (b) Reenlistment Bonus for Active Members.--Section 308(g) 
     of such title is amended by striking ``December 31, 2002'' 
     and inserting ``December 31, 2003''.
       (c) Enlistment Bonus for Active Members.--Section 309(e) of 
     such title is amended by striking ``December 31, 2002'' and 
     inserting ``December 31, 2003''.
       (d) Retention Bonus for Members With Critical Military 
     Skills.--Section 323(i) of such title is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.
       (e) Accession Bonus for New Officers in Critical Skills.--
     Section 324(g) of such title is amended by striking 
     ``December 31, 2002'' and inserting ``December 31, 2003''.

     SEC. 615. MINIMUM LEVELS OF HARDSHIP DUTY PAY FOR DUTY ON THE 
                   GROUND IN ANTARCTICA OR ON ARCTIC ICEPACK.

       Section 305 of title 37, United States Code, is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a), the following new 
     subsection:
       ``(b) Duty in Certain Locations.--(1) In the case of duty 
     at a location described in paragraph (2) at any time during a 
     month, the member of a uniformed service performing that duty 
     is entitled to special pay under this section at a monthly 
     rate of not less than $240, but not to exceed the monthly 
     rate specified in subsection (a). For each day of that duty 
     during the month, the member shall receive an amount equal to 
     \1/30\ of the monthly rate prescribed under this subsection.
       ``(2) Paragraph (1) applies with respect to duty performed 
     on the ground in Antarctica or on the Arctic icepack.''.

     SEC. 616. INCREASE IN MAXIMUM RATES FOR PRIOR SERVICE 
                   ENLISTMENT BONUS.

       Section 308i(b)(1) of title 37, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``$5,000'' and 
     inserting ``$8,000'';
       (2) in subparagraph (B), by striking ``$2,500'' and 
     inserting ``$4,000''; and
       (3) in subparagraph (C), by striking ``$2,000'' and 
     inserting ``$3,500''.

     SEC. 617. RETENTION INCENTIVES FOR HEALTH CARE PROVIDERS 
                   QUALIFIED IN A CRITICAL MILITARY SKILL.

       (a) Exception to Limitation on Maximum Bonus Amount.--
     Subsection (d) of section 323 of title 37, United States 
     Code, is amended--
       (1) by inserting ``(1)'' before ``A member''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The limitation in paragraph (1) on the total bonus 
     payments that a member may receive under this section does 
     not apply with respect to an officer who is assigned duties 
     as a health care provider.''.
       (b) Exception to Years of Service Limitation.--Subsection 
     (e) of such section is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by inserting ``(1)'' before ``A retention''; and
       (3) by adding at the end the following new paragraph:

[[Page H5564]]

       ``(2) The limitations in paragraph (1) do not apply with 
     respect to an officer who is assigned duties as a health care 
     provider during the period of active duty for which the bonus 
     is being offered.''.

            Subtitle C--Travel and Transportation Allowances

     SEC. 631. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD FOR 
                   MEMBERS PERFORMING CONSECUTIVE OVERSEAS TOURS 
                   OF DUTY.

       (a) Authorized Deferral Period.--Section 411b of title 37, 
     United States Code is amended by inserting after subsection 
     (a) the following new subsection:
       ``(b) Authority To Defer Travel; Limitations.--(1) Under 
     the regulations referred to subsection (a), a member may 
     defer the travel for which the member is paid travel and 
     transportation allowances under this section until anytime 
     before the completion of the consecutive tour at the same 
     duty station or the completion of the tour of duty at the new 
     duty station under the order involved, as the case may be.
       ``(2) If a member is unable to undertake the travel before 
     expiration of the deferral period under paragraph (1) because 
     of duty in connection with a contingency operation, the 
     member may defer the travel until not more than one year 
     after the date on which the member's duty in connection with 
     the contingency operation ends.''.
       (b) Conforming and Clerical Amendments.--Such section is 
     further amended--
       (1) in subsection (a)--
       (A) by striking ``(a)(1)'' and inserting ``(a) Allowances 
     Authorized.--''; and
       (B) by striking paragraph (2); and
       (2) by striking ``(b) The allowances'' and inserting ``(c) 
     Limitation on Allowance Rate.--''.
       (c) Application of Amendment.--Subsection (b) of section 
     411b of title 37, United States Code, as added by subsection 
     (a), shall apply with respect to members of the uniformed 
     services in a deferred leave travel status under such section 
     as of the date of the enactment of this Act or after that 
     date.

             Subtitle D--Retired Pay and Survivors Benefits

     SEC. 641. PHASE-IN OF FULL CONCURRENT RECEIPT OF MILITARY 
                   RETIRED PAY AND VETERANS DISABILITY 
                   COMPENSATION FOR MILITARY RETIREES WITH 
                   DISABILITIES RATED AT 60 PERCENT OR HIGHER.

       (a) Concurrent Receipt.--Section 1414 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 1414. Members eligible for retired pay who have 
       service-connected disabilities rated at 60 percent or 
       higher: concurrent payment of retired pay and veterans' 
       disability compensation

       ``(a) Payment of Both Retired Pay and Compensation.--
     Subject to subsection (b), a member or former member of the 
     uniformed services who is entitled for any month to retired 
     pay and who is also entitled for that month to veterans' 
     disability compensation for a qualifying service-connected 
     disability (hereinafter in this section referred to as a 
     `qualified retiree') is entitled to be paid both for that 
     month without regard to sections 5304 and 5305 of title 38. 
     For fiscal years 2003 through 2006, payment of retired pay to 
     such a member or former member is subject to subsection (c).
       ``(b) Special Rules for Chapter 61 Disability Retirees.--
       ``(1) Career retirees.--The retired pay of a member retired 
     under chapter 61 of this title with 20 years or more of 
     service otherwise creditable under section 1405 of this title 
     at the time of the member's retirement is subject to 
     reduction under sections 5304 and 5305 of title 38, but only 
     to the extent that the amount of the member's retired pay 
     under chapter 61 of this title exceeds the amount of retired 
     pay to which the member would have been entitled under any 
     other provision of law based upon the member's service in the 
     uniformed services if the member had not been retired under 
     chapter 61 of this title.
       ``(2) Disability retirees with less than 20 years of 
     service.--Subsection (a) does not apply to a member retired 
     under chapter 61 of this title with less than 20 years of 
     service otherwise creditable under section 1405 of this title 
     at the time of the member's retirement.
       ``(c) Phase-in of Full Concurrent Receipt.--For fiscal 
     years 2003 through 2006, retired pay payable to a qualified 
     retiree shall be determined as follows:
       ``(1) Fiscal year 2003.--For a month during fiscal year 
     2003, the amount of retired pay payable to a qualified 
     retiree is the amount (if any) of retired pay in excess of 
     the current baseline offset plus the following:
       ``(A) For a month for which the retiree receives veterans' 
     disability compensation for a qualifying service-connected 
     disability rated as total, $750.
       ``(B) For a month for which the retiree receives veterans' 
     disability compensation for a qualifying service-connected 
     disability rated as 90 percent, $500.
       ``(C) For a month for which the retiree receives veterans' 
     disability compensation for a qualifying service-connected 
     disability rated as 80 percent, $250.
       ``(D) For a month for which the retiree receives veterans' 
     disability compensation for a qualifying service-connected 
     disability rated as 70 percent, $250.
       ``(E) For a month for which the retiree receives veterans' 
     disability compensation for a qualifying service-connected 
     disability rated as 60 percent, $125.
       ``(2) Fiscal year 2004.--For a month during fiscal year 
     2004, the amount of retired pay payable to a qualified 
     retiree is the sum of--
       ``(A) the amount specified in paragraph (1) for that 
     qualified retiree; and
       ``(B) 23 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount specified in paragraph 
     (1) for that member's disability.
       ``(3) Fiscal year 2005.--For a month during fiscal year 
     2005, the amount of retired pay payable to a qualified 
     retiree is the sum of--
       ``(A) the amount determined under paragraph (2) for that 
     qualified retiree; and
       ``(B) 30 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (2) for that qualified retiree.
       ``(4) Fiscal year 2006.--For a month during fiscal year 
     2006, the amount of retired pay payable to a qualified 
     retiree is the sum of--
       ``(A) the amount determined under paragraph (3) for that 
     qualified retiree; and
       ``(B) 64 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (3) for that qualified retiree.
       ``(d) Definitions.--In this section:
       ``(1) Retired pay.--The term `retired pay' includes 
     retainer pay, emergency officers' retirement pay, and naval 
     pension.
       ``(2) Veterans' disability compensation.--The term 
     `veterans' disability compensation' has the meaning given the 
     term `compensation' in section 101(13) of title 38.
       ``(3) Service-connected.--The term `service-connected' has 
     the meaning given that term in section 101(16) of title 38.
       ``(4) Qualifying service-connected disability.--The term 
     `qualifying service-connected disability' means a service-
     connected disability or combination of service-connected 
     disabilities that is rated as not less than 60 percent 
     disabling by the Secretary of Veterans Affairs.
       ``(5) Disability rated as total.--The term `disability 
     rated as total' means--
       ``(A) a disability, or combination of disabilities, that is 
     rated as total under the standard schedule of rating 
     disabilities in use by the Department of Veterans Affairs; or
       ``(B) a disability, or combination of disabilities, for 
     which the scheduled rating is less than total but for which a 
     rating of total is assigned by reason of inability of the 
     disabled person concerned to secure or follow a substantially 
     gainful occupation as a result of service-connected 
     disabilities.
       ``(6) Current baseline offset.--
       ``(A) In general.--The term `current baseline offset' for 
     any qualified retiree means the amount for any month that is 
     the lesser of--
       ``(i) the amount of the applicable monthly retired pay of 
     the qualified retiree for that month; and
       ``(ii) the amount of monthly veterans' disability 
     compensation to which the qualified retiree is entitled for 
     that month.
       ``(B) Applicable retired pay.--In subparagraph (A), the 
     term `applicable retired pay' for a qualified retiree means 
     the amount of monthly retired pay to which the qualified 
     retiree is entitled, determined without regard to this 
     section or sections 5304 and 5305 of title 38), except that 
     in the case of such a retiree who was retired under chapter 
     61 of this title, such amount is the amount of retired pay to 
     which the member would have been entitled under any other 
     provision of law based upon the member's service in the 
     uniformed services if the member had not been retired under 
     chapter 61 of this title.''.
       (b) Repeal of Special Compensation Authority.--Section 1413 
     of title 10, United States Code, is repealed.
       (c) Payment of Increased Retired Pay Costs Due to 
     Concurrent Receipt.--(1) Section 1465(b) of such title is 
     amended by adding at the end the following new paragraph:
       ``(3) At the same time that the Secretary of Defense makes 
     the determination required by paragraph (1) for any fiscal 
     year, the Secretary shall determine the amount of the 
     Treasury contribution to be made to the Fund for the next 
     fiscal year under section 1466(b)(2)(D) of this title. That 
     amount shall be determined in the same manner as the 
     determination under paragraph (1) of the total amount of 
     Department of Defense contributions to be made to the Fund 
     during that fiscal year under section 1466(a) of this title, 
     except that for purposes of this paragraph the Secretary, in 
     making the calculations required by subparagraphs (A) and (B) 
     of that paragraph, shall use the single level percentages 
     determined under subsection (c)(4), rather than those 
     determined under subsection (c)(1).''.
       (2) Section 1465(c) of such title is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting before the semicolon 
     at the end the following: ``, to be determined without regard 
     to section 1414 of this title'';
       (ii) in subparagraph (B), by inserting before the period at 
     the end the following: ``, to be determined without regard to 
     section 1414 of this title''; and
       (iii) in the sentence following subparagraph (B), by 
     striking ``subsection (b)'' and inserting ``subsection 
     (b)(1)'';
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Whenever the Secretary carries out an actuarial 
     valuation under paragraph (1), the Secretary shall include as 
     part of such valuation the following:

[[Page H5565]]

       ``(A) A determination of a single level percentage 
     determined in the same manner as applies under subparagraph 
     (A) of paragraph (1), but based only upon the provisions of 
     section 1414 of this title.
       ``(B) A determination of a single level percentage 
     determined in the same manner as applies under subparagraph 
     (B) of paragraph (1), but based only upon the provisions of 
     section 1414 of this title.

     Such single level percentages shall be used for the purposes 
     of subsection (b)(3).''.
       (3) Section 1466(b) of such title is amended--
       (A) in paragraph (1), by striking ``sections 1465(a) and 
     1465(c)'' and inserting ``sections 1465(a), 1465(b)(3), 
     1465(c)(2), and 1465(c)(3)''; and
       (B) by adding at the end of paragraph (2) the following new 
     subparagraph:
       ``(D) The amount for that year determined by the Secretary 
     of Defense under section 1465(b)(3) of this title for the 
     cost to the Fund arising from increased amounts payable from 
     the Fund by reason of section 1414 of this title.''.
       (d) Clerical Amendments.--The table of sections at the 
     beginning of chapter 71 of such title is amended--
       (1) by striking the item relating to section 1413; and
       (2) by striking the item relating to section 1414 and 
     inserting the following:

``1414. Members eligible for retired pay who have service-connected 
              disabilities rated at 60 percent or higher: concurrent 
              payment of retired pay and veterans' disability 
              compensation.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply with respect to retired pay payable for months 
     after September 2002.

     SEC. 642. CHANGE IN SERVICE REQUIREMENTS FOR ELIGIBILITY FOR 
                   RETIRED PAY FOR NON-REGULAR SERVICE.

       (a) Reduction in Requirement for Years of Reserve Component 
     Service Before Retired Pay Eligibility.--Section 12731(a)(3) 
     of title 10, United States Code, is amended by striking 
     ``eight years'' and inserting ``six years''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2002.

     SEC. 643. ELIMINATION OF POSSIBLE INVERSION IN RETIRED PAY 
                   COST-OF-LIVING ADJUSTMENT FOR INITIAL COLA 
                   COMPUTATION.

       (a) Elimination of Possible COLA Inversion.--Section 1401a 
     of title 10, United States Code, is amended--
       (1) in subsections (c)(1), (d), and (e), by inserting ``but 
     subject to subsection (f)(2)'' after ``Notwithstanding 
     subsection (b)'';
       (2) in subsection (c)(2), by inserting ``(subject to 
     subsection (f)(2) as applied to other members whose retired 
     pay is computed on the current rates of basic pay in the most 
     recent adjustment under this section)'' after ``shall be 
     increased''; and
       (3) in subsection (f)--
       (A) by designating the text after the subsection heading as 
     paragraph (1), indenting that text two ems, and inserting 
     ``(1) Prevention of retired pay inversions.--'' before 
     ``Notwithstanding''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Prevention of cola inversions.--The percentage of the 
     first adjustment under this section in the retired pay of any 
     person, as determined under subsection (c)(1), (c)(2), (d), 
     or (e), may not exceed the percentage increase in retired pay 
     determined under subsection (b)(2) that is effective on the 
     same date as the effective date of such first adjustment.''.
       (b) Technical Amendments.--Such section is further 
     amended--
       (1) in subsection (d), by inserting ``or on or after August 
     1, 1986, if the member or former member did not elect to 
     receive a bonus under section 322 of title 37'' after 
     ``August 1, 1986,''; and
       (2) in subsection (e), by inserting ``and elected to 
     receive a bonus under section 322 of title 37'' after 
     ``August 1, 1986,''.

     SEC. 644. TECHNICAL REVISIONS TO SO-CALLED ``FORGOTTEN 
                   WIDOWS'' ANNUITY PROGRAM.

       (a) Clarification of Eligibility.--Subsection (a)(1) of 
     section 644 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 1448 note) is 
     amended--
       (1) in subparagraph (A), by inserting after ``(A)'' the 
     following: ``became entitled to retired or retainer pay 
     before September 21, 1972,''; and
       (2) in subparagraph (B), by striking ``was a member of a 
     reserve component of the Armed Forces'' and inserting 
     ``died''.
       (b) Clarification of Interaction With Other Benefits.--(1) 
     Subsection (a)(2) of such section is amended by striking 
     ``and who'' and all that follows through ``note)''.
       (2) Subsection (b)(2) of such section is amended to read as 
     follows:
       ``(2) The amount of an annuity to which a surviving spouse 
     is entitled under this section for any period shall be 
     reduced (but not below zero) by any amount paid to that 
     surviving spouse for the same period under any of the 
     following provisions of law:
       ``(A) Section 1311(a) of title 38, United States Code 
     (relating to dependency and indemnity compensation payable by 
     the Secretary of Veterans Affairs).
       ``(B) Chapter 73 of title 10, United States Code.
       ``(C) Section 4 of Public Law 92-425 (10 U.S.C. 1448 
     note).''.
       (c) Clarification of Definition of Surviving Spouse.--
     Subsection (d)(2) of such section is amended by striking 
     ``the terms'' and all that follows through ``and (8)'' and 
     inserting ``such term in paragraph (9)''.
       (d) Clarification of Effective Date of Benefits.--
     Subsection (e) of such section is amended--
       (1) in paragraph (1), by striking ``the month in which this 
     Act is enacted'' and inserting ``November 1997'';
       (2) in paragraph (2), by striking ``the first month that 
     begins after the month in which this Act is enacted'' and 
     inserting ``December 1997''; and
       (3) by adding at the end the following new paragraph:
       ``(3) In the case of a person entitled to an annuity under 
     this section who applies for the annuity after the date of 
     the enactment of this paragraph, such annuity shall be paid 
     only for months beginning after the date on which such 
     application is submitted.''.
       (e) Specification in Law of Current Benefit Amount.--
     Subsection (b) of such section is amended--
       (1) in paragraph (1), by striking ``$165'' and inserting 
     ``$185.58''; and
       (2) in paragraph (3)--
       (A) by striking ``the date of the enactment of this Act'' 
     and inserting ``May 1, 2002,''; and
       (B) by striking the last sentence.

            Subtitle E--Reserve Component Montgomery GI Bill

     SEC. 651. EXTENSION OF MONTGOMERY GI BILL-SELECTED RESERVE 
                   ELIGIBILITY PERIOD.

       Section 16133(a) of title 10, United States Code, is 
     amended by striking ``10-year'' and inserting ``14-year''.

                       Subtitle F--Other Matters

     SEC. 661. ADDITION OF DEFINITION OF CONTINENTAL UNITED STATES 
                   IN TITLE 37.

       (a) Definition.--Section 101(1) of title 37, United States 
     Code, is amended by adding at the end the following new 
     sentence: ``The term `continental United States' means the 48 
     contiguous States and the District of Columbia.''.
       (b) Conforming Amendments.--Title 37, United States Code, 
     is amended as follows:
       (1) Section 314(a)(3) is amended by striking ``the 48 
     contiguous States and the District of Columbia'' and 
     inserting ``the continental United States''.
       (2) Section 403b(i) is amended by striking paragraph (6).
       (3) Section 409 is amended by striking subsection (e).
       (4) Section 411b(a) is amended by striking ``the 48 
     contiguous States and the District of Columbia'' both places 
     it appears and inserting ``the continental United States''.
       (5) Section 411d is amended by striking subsection (d).
       (6) Section 430 is amended by striking subsection (f) and 
     inserting the following new subsection (f):
       ``(f) Definitions.--In this section:
       ``(1) The term `formal education' means the following:
       ``(A) A secondary education.
       ``(B) An undergraduate college education.
       ``(C) A graduate education pursued on a full-time basis at 
     an institution of higher education.
       ``(D) Vocational education pursued on a full-time basis at 
     a postsecondary vocational institution.
       ``(2) The term `institution of higher education' has the 
     meaning given that term in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1001).
       ``(3) The term `postsecondary vocational institution' has 
     the meaning given that term in section 102(c) of the Higher 
     Education Act of 1965 (20 U.S.C. 1002(c)).''.

                     TITLE VII--HEALTH CARE MATTERS

              Subtitle A--Health Care Program Improvements

     SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE 
                   PREAUTHORIZATION OF INPATIENT MENTAL HEALTH 
                   CARE FOR MEDICARE-ELIGIBLE BENEFICIARIES.

       (a) Elimination of Requirement.--Section 1079(i) of title 
     10, United States Code, is amended in paragraph (3) by 
     inserting ``or in the case of a person eligible for health 
     care benefits under section 1086(d)(2) of this title for whom 
     payment for such services is made under subsection 1086(d)(3) 
     of this title'' after ``an emergency''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect October 1, 2004.

     SEC. 702. EXPANSION OF TRICARE PRIME REMOTE FOR CERTAIN 
                   DEPENDENTS.

       (a) Expansion of Eligibility.--Section 1079(p) of title 10, 
     United States Code, is amended in paragraph (1)--
       (1) by inserting ``(A)'' after ``(1)'';
       (2) by striking ``referred to in subsection (a) of a member 
     of the uniformed services referred to in 1074(c)(3) of this 
     title who are residing with the member'' and inserting 
     ``described in subparagraph (B)''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) A dependent referred to in subparagraph (A) is--
       ``(i) a dependent referred to in subsection (a) of a member 
     of the uniformed services referred to in section 1074(c)(3) 
     of this title, who is residing with the member; or
       ``(ii) a dependent referred to in subsection (a) of a 
     member of the uniformed services

[[Page H5566]]

     with a permanent duty assignment for which the dependent is 
     not authorized to accompany the member and one of the 
     following circumstances exists:
       ``(I) The dependent continues to reside at the location of 
     the former duty assignment of the member (or residence in the 
     case of a member of a reserve component ordered to active 
     duty for a period of more than 30 days), and that location is 
     more than 50 miles, or approximately one hour of driving 
     time, from the nearest military medical treatment facility 
     that can adequately provide needed health care.
       ``(II) There is no reasonable expectation the member will 
     return to the location of the former duty assignment, and the 
     dependent moves to a location that is more than 50 miles, or 
     approximately one hour of driving time, from the nearest 
     military medical treatment facility that can adequately 
     provide needed health care.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect October 1, 2002.

     SEC. 703. ENABLING DEPENDENTS OF CERTAIN MEMBERS WHO DIED 
                   WHILE ON ACTIVE DUTY TO ENROLL IN THE TRICARE 
                   DENTAL PROGRAM.

       Section 1076a(k)(2) of title 10, United States Code, is 
     amended by inserting ``(or, if not enrolled, if the member 
     discontinued participation under subsection (f))'' after 
     ``subsection (a)''.

     SEC. 704. IMPROVEMENTS REGARDING THE DEPARTMENT OF DEFENSE 
                   MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.

       (a) Source of Funds for Monthly Accrual Payments into the 
     Fund.--Section 1116(c) of title 10, United States Code, is 
     amended to read as follows:
       ``(c) Amounts paid into the Fund under subsection (a) shall 
     be paid from funds available for the pay of members of the 
     participating uniformed services under the jurisdiction of 
     the respective administering Secretaries.''.
       (b) Mandatory Participation of Other Uniformed Services.--
     Section 1111(c) of such title is amended--
       (1) in the first sentence, by striking ``may enter into an 
     agreement with any other administering Secretary'' and 
     inserting ``shall enter into an agreement with each other 
     administering Secretary''; and
       (2) in the second sentence, by striking ``Any'' and 
     inserting ``Each''.

     SEC. 705. CERTIFICATION OF INSTITUTIONAL AND NON-
                   INSTITUTIONAL PROVIDERS UNDER THE TRICARE 
                   PROGRAM.

       (a) In General.--Section 1079 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(q) For purposes of designating institutional and non-
     institutional health care providers authorized to provide 
     care under this section, the Secretary of Defense shall 
     prescribe regulations (in consultation with the other 
     administering Secretaries) that will, to the extent 
     practicable and subject to the limitations of subsection (a), 
     so designate any provider authorized to provide care under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect October 1, 2003.

     SEC. 706. TECHNICAL CORRECTION REGARDING TRANSITIONAL HEALTH 
                   CARE.

       Effective as of December 28, 2001, section 1145(a)(1) of 
     title 10, United States Code, is amended by inserting ``(and 
     the dependents of the member)'' after ``separated from active 
     duty as described in paragraph (2)''. The amendment made by 
     the preceding sentence shall be deemed to have been enacted 
     as part of section 736 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107).

                          Subtitle B--Reports

     SEC. 711. COMPTROLLER GENERAL REPORT ON TRICARE CLAIMS 
                   PROCESSING.

       Not later than March 31, 2003, the Comptroller General 
     shall submit to Congress an evaluation of the continuing 
     impediments to a cost effective and provider- and 
     beneficiary-friendly system for claims processing under the 
     TRICARE program. The evaluation shall include a discussion of 
     the following:
       (1) The extent of progress implementing improvements in 
     claims processing, particularly regarding the application of 
     best industry practices.
       (2) The extent of progress in simplifying claims processing 
     procedures, including the elimination of, or reduction in, 
     the complexity of the Health Care Service Record 
     requirements.
       (3) The suitability of a medicare-compatible claims 
     processing system with the data requirements necessary to 
     administer the TRICARE program and related information 
     systems.
       (4) The extent to which the claims processing system for 
     the TRICARE program impedes provider participation and 
     beneficiary access.
       (5) Recommendations for improving the claims processing 
     system that will reduce processing and administration costs, 
     create greater competition, and improve fraud-prevention 
     activities.

     SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION OF CARE 
                   UNDER THE TRICARE PROGRAM.

       Not later than March 31, 2003, the Comptroller General 
     shall submit to Congress an evaluation of the nature of, 
     reasons for, extent of, and trends regarding network provider 
     instability under the TRICARE program, and the effectiveness 
     of efforts by the Department of Defense and managed care 
     support contractors to measure and mitigate such instability. 
     The evaluation shall include a discussion of the following:
       (1) The adequacy of measurement tools of TRICARE network 
     instability and their use by the Department of Defense and 
     managed care support contractors to assess network adequacy 
     and stability.
       (2) Recommendations for improvements needed in measurement 
     tools or their application.
       (3) The relationship of reimbursement rates and 
     administration requirements (including preauthorization 
     requirements) to TRICARE network instability.
       (4) The extent of problems under the TRICARE program and 
     likely future trends with and without intervention using 
     existing authority.
       (5) Use of existing authority by the Department of Defense 
     and TRICARE managed care support contractors to apply higher 
     reimbursement rates in specific geographic areas.
       (6) Recommendations for specific fiscally prudent measures 
     that could mitigate negative trends or improve provider and 
     network stability.

     SEC. 713. REPEAL OF REPORT REQUIREMENT.

       Notwithstanding subsection (f)(2) of section 712 of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398; 114 
     Stat. 1654A-179), the amendment made by subsection (e) of 
     such section shall not take effect and the paragraph amended 
     by such subsection is repealed.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

     SEC. 721. SHORT TITLE.

       This subtitle may be cited as the ``Department of Defense-
     Department of Veterans Affairs Health Resources Sharing and 
     Performance Improvement Act of 2002''.

     SEC. 722. FINDINGS AND SENSE OF CONGRESS CONCERNING STATUS OF 
                   HEALTH RESOURCES SHARING BETWEEN THE DEPARTMENT 
                   OF VETERANS AFFAIRS AND THE DEPARTMENT OF 
                   DEFENSE.

       (a) Findings.--Congress makes the following findings:
       (1) Federal health care resources are scarce and thus 
     should be effectively and efficiently used.
       (2) In 1982, Congress, in Public Law 97-174, authorized the 
     sharing of health resources between Department of Defense 
     medical treatment facilities and Department of Veterans 
     Affairs health care facilities in order to allow more 
     effective and efficient use of those health resources.
       (3) Health care beneficiaries of the Departments of Defense 
     and Veterans Affairs, whether active servicemembers, 
     veterans, retirees, or family members of active or retired 
     servicemembers, should have full access to the health care 
     and services that Congress has authorized for them.
       (4) The Secretary of Defense and the Secretary of Veterans 
     Affairs, and the appropriate officials of each of the 
     Departments of Defense and Veterans Affairs with 
     responsibilities related to health care, have not taken full 
     advantage of the opportunities provided by law to make their 
     respective health resources available to health care 
     beneficiaries of the other Department in order to provide 
     improved health care for the whole number of beneficiaries.
       (5) After the many years of support and encouragement from 
     Congress, the Departments have made little progress in health 
     resource sharing and the intended results of the sharing 
     authority have not been achieved.
       (b) Sense of Congress.--Congress urges the Secretary of 
     Defense and the Secretary of Veterans Affairs--
       (1) to commit their respective Departments to significantly 
     improve mutually beneficial sharing and coordination of 
     health care resources and services during peace and war;
       (2) to build organizational cultures supportive of improved 
     sharing and coordination of health care resources and 
     services; and
       (3) to establish and achieve measurable goals to facilitate 
     increased sharing and coordination of health care resources 
     and services.
       (c) Purpose.--It is the purpose of this Act--
       (1) to authorize a program to advance mutually beneficial 
     sharing and coordination of health care resources between the 
     two Departments consistent with the longstanding intent of 
     Congress; and
       (2) to establish a basis for improved strategic planning by 
     the Department of Defense and Department of Veterans Affairs 
     health systems to ensure that scarce health care resources 
     are used more effectively and efficiently in order to enhance 
     access to high quality health care for their respective 
     beneficiaries.

     SEC. 723. REVISED COORDINATION AND SHARING GUIDELINES.

       (a) In General.--(1) Section 8111 of title 38, United 
     States Code, is amended to read as follows:

[[Page H5567]]

     ``Sec. 8111. Sharing of Department of Veterans Affairs and 
       Department of Defense health care resources

       ``(a) Required Coordination and Sharing of Health Care 
     Resources.--The Secretary of Veterans Affairs and the 
     Secretary of Defense shall enter into agreements and 
     contracts for the mutually beneficial coordination, use, or 
     exchange of use of the health care resources of the 
     Department of Veterans Affairs and the Department of Defense 
     with the goal of improving the access to, and quality and 
     cost effectiveness of, the health care provided by the 
     Veterans Health Administration and the Military Health System 
     to the beneficiaries of both Departments.
       ``(b) Joint Requirements for Secretaries of Veterans 
     Affairs and Defense.--To facilitate the mutually beneficial 
     coordination, use, or exchange of use of the health care 
     resources of the two Departments, the two Secretaries shall 
     carry out the following functions:
       ``(1) Develop and publish a joint strategic vision 
     statement and a joint strategic plan to shape, focus, and 
     prioritize the coordination and sharing efforts among 
     appropriate elements of the two Departments and incorporate 
     the goals and requirements of the joint sharing plan into the 
     strategic and performance plan of each Department under the 
     Government Performance and Results Act.
       ``(2) Jointly fund the interagency committee provided for 
     under subsection (c).
       ``(3) Continue to facilitate and improve sharing between 
     individual Department of Veterans Affairs and Department of 
     Defense health care facilities, but giving priority of effort 
     to initiatives (A) that improve sharing and coordination of 
     health resources at the intraregional and nationwide levels, 
     and (B) that improve the ability of both Departments to 
     provide coordinated health care.
       ``(4) Establish a joint incentive program under subsection 
     (d).
       ``(c) DOD-VA Health Executive Committee.--(1) There is 
     established an interagency committee to be known as the 
     Department of Veterans Affairs-Department of Defense Health 
     Executive Committee (hereinafter in this section referred to 
     as the `Committee'). The Committee is composed of--
       ``(A) the Deputy Secretary of the Department of Veterans 
     Affairs and such other officers and employees of the 
     Department of Veterans Affairs as the Secretary of Veterans 
     Affairs may designate; and
       ``(B) the Under Secretary of Defense for Personnel and 
     Readiness and such other officers and employees of the 
     Department of Defense as the Secretary of Defense may 
     designate.
       ``(2)(A) During odd-numbered fiscal years, the Deputy 
     Secretary of Veterans Affairs shall chair the Committee. 
     During even-numbered fiscal years, the Under Secretary of 
     Defense shall chair the Committee.
       ``(B) The Deputy Secretary and the Under Secretary shall 
     determine the size and structure of the Committee, as well as 
     the administrative and procedural guidelines for the 
     operation of the Committee. The two Departments shall share 
     equally the Committee's cost of personnel and administrative 
     support and services. Support for such purposes shall be 
     provided at a level sufficient for the efficient operation of 
     the Committee, including a permanent staff and, as required, 
     other temporary working groups of appropriate departmental 
     staff and outside experts.
       ``(3) The Committee shall recommend to the Secretaries 
     strategic direction for the joint coordination and sharing 
     efforts between and within the two Departments under this 
     section and shall oversee implementation of those efforts.
       ``(4) The Committee shall submit to the two Secretaries and 
     to Congress an annual report containing such recommendations 
     as the Committee considers appropriate. The two Secretaries 
     shall implement the Committee's recommendations unless, with 
     respect to any such recommendation, either Secretary formally 
     determines that the recommendation should not be implemented 
     or should be implemented in a modified form. Upon making such 
     a determination, the Secretary making the determination shall 
     submit to Congress notice of the Secretary's determination 
     and the Secretary's rationale for the determination.
       ``(5) In order to enable the Committee to make 
     recommendations in its annual report under paragraph (4), the 
     Committee shall do the following:
       ``(A) Review existing policies, procedures, and practices 
     relating to the coordination and sharing of health care 
     resources between the two Departments.
       ``(B) Identify changes in policies, procedures, and 
     practices that, in the judgment of the Committee, would 
     promote mutually beneficial coordination, use, or exchange of 
     use of the health care resources of the two Departments, with 
     the goal of improving the access to, and quality and cost 
     effectiveness of, the health care provided by the Veterans 
     Health Administration and the Military Health System to the 
     beneficiaries of both Departments.
       ``(C) Identify and assess further opportunities for the 
     coordination and sharing of health care resources between the 
     Departments that, in the judgment of the Committee, would not 
     adversely affect the range of services, the quality of care, 
     or the established priorities for care provided by either 
     Department.
       ``(D) Review the plans of both Departments for the 
     acquisition of additional health care resources, especially 
     new facilities and major equipment and technology, in order 
     to assess the potential effect of such plans on further 
     opportunities for the coordination and sharing of health care 
     resources.
       ``(E) Review the implementation of activities designed to 
     promote the coordination and sharing of health care resources 
     between the Departments. To assist in this effort, the 
     Committee chairman, under procedures jointly developed by the 
     Secretaries of both Departments, may task the Inspectors 
     General of either or both Departments.
       ``(d) Joint Incentives Program.--(1) Pursuant to subsection 
     (b)(4), the two Secretaries shall carry out a program to 
     identify, provide incentives to, implement, fund, and 
     evaluate creative coordination and sharing initiatives at the 
     facility, intraregional and nationwide levels. The program 
     shall be administered by the Committee established in 
     subsection (c), under procedures jointly prescribed by the 
     two Secretaries.
       ``(2) To facilitate the incentive program, there is 
     established in the Treasury, effective on October 1, 2003, a 
     DOD-VA Health Care Sharing Incentive Fund. Each Secretary 
     shall annually contribute to the fund a minimum of 
     $15,000,000 from the funds appropriated to that Secretary's 
     Department. Such funds shall remain available until expended.
       ``(3)(A) The implementation and effectiveness of the 
     program under this subsection shall be reviewed annually by 
     the joint Department of Defense-Department of Veterans 
     Affairs Inspector General review team established in section 
     724(i) of the Department of Defense-Department of Veterans 
     Affairs Health Resources Sharing and Performance Improvement 
     Act of 2002. On completion of the annual review, the review 
     team shall submit a report to the two Secretaries on the 
     results of the review. Such report shall be submitted through 
     the Committee to the Secretaries not later than December 31 
     of each calendar year. The Secretaries shall forward each 
     report, without change, to the Committees on Armed Services 
     and Veterans' Affairs of the Senate and House of 
     Representatives not later than February 28 of the following 
     year.
       ``(B) Each such report shall describe activities carried 
     out under the program under this subsection during the 
     preceding fiscal year. Each report shall include at least the 
     following:
       ``(i) An analysis of the initiatives funded by the 
     Committee, and the funds so expended by such initiatives, 
     from the Health Care Sharing Incentive Fund, including the 
     purposes and effects of those initiatives on improving access 
     to care by beneficiaries, improvements in the quality of care 
     received by those beneficiaries, and efficiencies gained in 
     delivering services to those beneficiaries.
       ``(ii) Other matters of interest, including recommendations 
     from the review team to make legislative improvements to the 
     program.
       ``(4) The program under this subsection shall terminate on 
     September 30, 2007.
       ``(e) Guidelines and Policies for Implementation of 
     Coordination and Sharing Recommendations, Contracts, and 
     Agreements.--(1) To implement the recommendations made by the 
     Committee under subsection (c)(2), as well as to carry out 
     other health care contracts and agreements for coordination 
     and sharing initiatives as they consider appropriate, the two 
     Secretaries shall jointly issue guidelines and policy 
     directives. Such guidelines and policies shall provide for 
     coordination and sharing that--
       ``(A) is consistent with the health care responsibilities 
     of the Department of Veterans Affairs under this title and 
     with the health care responsibilities of the Department of 
     Defense under chapter 55 of title 10;
       ``(B) will not adversely affect the range of services, the 
     quality of care, or the established priorities for care 
     provided by either Department; and
       ``(C) will not reduce capacities in certain specialized 
     programs of the Department of Veterans Affairs that the 
     Secretary is required to maintain in accordance with section 
     1706(b) of this title.
       ``(2) To facilitate the sharing and coordination of health 
     care services between the two Departments, the two 
     Secretaries shall jointly develop and implement guidelines 
     for a standardized, uniform payment and reimbursement 
     schedule for those services. Such schedule shall be 
     implemented no later than the beginning of fiscal year 2004 
     and shall be revised periodically as necessary.
       ``(3)(A) The guidelines established under paragraph (1) 
     shall authorize the heads of individual Department of Defense 
     and Department of Veterans Affairs medical facilities and 
     service regions to enter into health care resources 
     coordination and sharing agreements.
       ``(B) Under any such agreement, an individual who is a 
     primary beneficiary of one Department may be provided health 
     care, as provided in the agreement, at a facility or in the 
     service region of the other Department that is a party to the 
     sharing agreement.
       ``(C) Each such agreement shall identify the health care 
     resources to be shared.
       ``(D) Each such agreement shall provide, and shall specify 
     procedures designed to ensure, that the availability of 
     direct health care to individuals who are not primary 
     beneficiaries of the providing Department is (i) on a 
     referral basis from the facility or service region of the 
     other Department, and (ii) does not (as determined by the 
     head of the providing facility or region) adversely affect 
     the range of services, the quality of

[[Page H5568]]

     care, or the established priorities for care provided to the 
     primary beneficiaries of the providing Department.
       ``(E) Each such agreement shall provide that a providing 
     Department or service region shall be reimbursed for the cost 
     of the health care resources provided under the agreement and 
     that the rate of such reimbursement shall be as determined in 
     accordance with paragraph (2).
       ``(F) Each proposal for an agreement under this paragraph 
     shall be effective (i) on the 46th day after the receipt of 
     such proposal by the Committee, unless earlier disapproved, 
     or (ii) if earlier approved by the Committee, on the date of 
     such approval.
       ``(G) Any funds received through such a uniform payment and 
     reimbursement schedule shall be credited to funds that have 
     been allotted to the facility of either Department that 
     provided the care or services, or is due the funds from, any 
     such agreement.
       ``(f) Annual Joint Report.--(1) At the time the President's 
     budget is transmitted to Congress in any year pursuant to 
     section 1105 of title 31, the two Secretaries shall submit to 
     Congress a joint report on health care coordination and 
     sharing activities under this section during the fiscal year 
     that ended during the previous calendar year.
       ``(2) Each report under this section shall include the 
     following:
       ``(A) The guidelines prescribed under subsection (e) of 
     this section (and any revision of such guidelines).
       ``(B) The assessment of further opportunities identified 
     under subparagraph (C) of subsection (c)(5) for the sharing 
     of health-care resources between the two Departments.
       ``(C) Any recommendation made under subsection (c)(4) of 
     this section during such fiscal year.
       ``(D) A review of the sharing agreements entered into under 
     subsection (e) of this section and a summary of activities 
     under such agreements during such fiscal year and a 
     description of the results of such agreements in improving 
     access to, and the quality and cost effectiveness of, the 
     health care provided by the Veterans Health Administration 
     and the Military Health System to the beneficiaries of both 
     Departments.
       ``(E) A summary of other planning and activities involving 
     either Department in connection with promoting the 
     coordination and sharing of Federal health-care resources 
     during the preceding fiscal year.
       ``(F) Such recommendations for legislation as the two 
     Secretaries consider appropriate to facilitate the sharing of 
     health-care resources between the two Departments.
       ``(3) In addition to the matters specified in paragraph 
     (2), the two Secretaries shall include in the annual report 
     under this subsection an overall status report of the 
     progress of health resources sharing between the two 
     Departments as a consequence of the Department of Defense-
     Department of Veterans Affairs Health Resources Sharing and 
     Performance Improvement Act of 2002 and of other sharing 
     initiatives taken during the period covered by the report. 
     Such status report shall indicate the status of such sharing 
     and shall include appropriate data as well as analyses of 
     that data. The annual report shall include the following:
       ``(A) Enumerations and explanations of major policy 
     decisions reached by the two Secretaries during the period 
     covered by the report period with respect to sharing between 
     the two Departments.
       ``(B) A description of any purposes of Department of 
     Defense-Department of Veterans Affairs Health Resources 
     Sharing and Performance Improvement Act of 2002 that 
     presented barriers that could not be overcome by the two 
     Secretaries and their status at the time of the report.
       ``(C) A description of progress made in new ventures or 
     particular areas of sharing and coordination that would be of 
     policy interest to Congress consistent with the intent of 
     such Act.
       ``(D) A description of enhancements of access to care of 
     beneficiaries of both Departments that came about as a result 
     of new sharing approaches brought about by such Act.
       ``(E) A description of proposals for which funds are 
     provided through the joint incentives program under 
     subsection (d), together with a description of their results 
     or status at the time of the report, including access 
     improvements, savings, and quality-of-care enhancements they 
     brought about, and a description of any additional use of 
     funds made available under subsection (d).
       ``(g) Definitions.--For the purposes of this section:
       ``(1) The term `beneficiary' means a person who is a 
     primary beneficiary of the Department of Veterans Affairs or 
     of the Department of Defense.
       ``(2) The term `direct health care' means health care 
     provided to a beneficiary in a medical facility operated by 
     the Department or the Department of Defense.
       ``(3) The term `head of a medical facility' (A) with 
     respect to a medical facility of the Department, means the 
     director of the facility, and (B) with respect to a medical 
     facility of the Department of Defense, means the medical or 
     dental officer in charge or the contract surgeon in charge.
       ``(4) The term `health-care resource' includes hospital 
     care, medical services, and rehabilitative services, as those 
     terms are defined in paragraphs (5), (6), and (8), 
     respectively, of section 1701 of this title, services under 
     sections 1782 and 1783 of this title, any other health-care 
     service, and any health-care support or administrative 
     resource.
       ``(5) The term `primary beneficiary' (A) with respect to 
     the Department means a person who is eligible under this 
     title (other than under section 1782, 1783, or 1784 or 
     subsection (d) of this section) or any other provision of law 
     for care or services in Department medical facilities, and 
     (B) with respect to the Department of Defense, means a member 
     or former member of the Armed Forces who is eligible for care 
     under section 1074 of title 10.
       ``(6) The term `providing Department' means the Department 
     of Veterans Affairs, in the case of care or services 
     furnished by a facility of the Department of Veterans 
     Affairs, and the Department of Defense, in the case of care 
     or services furnished by a facility of the Department of 
     Defense.
       ``(7) The term `service region' means a geographic service 
     area of the Veterans Health Administration, in the case of 
     the Department of Veterans Affairs, and a service region, in 
     the case of the Department of Defense.''.
       (2) The item relating to that section in the table of 
     sections at the beginning of chapter 81 of title 38, United 
     States Code, is amended to read as follows:

``8111. Sharing of Department of Veterans Affairs and Department of 
              Defense health care resources.''.

       (b) Conforming Amendment.--Section 1104 of title 10, United 
     States Code, is amended by striking ``may'' and inserting 
     ``shall''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2003.

     SEC. 724. HEALTH CARE RESOURCES SHARING AND COORDINATION 
                   PROJECT.

       (a) Establishment.--(1) The Secretary of Veterans Affairs 
     and the Secretary of Defense shall conduct a health care 
     resources sharing project to serve as a test for evaluating 
     the feasibility, and the advantages and disadvantages, of 
     measures and programs designed to improve the sharing and 
     coordination of health care and health care resources between 
     the Department of Veterans Affairs and the Department of 
     Defense. The project shall be carried out, as a minimum, at 
     the sites identified under subsection (b).
       (2) Reimbursement between the two Departments with respect 
     to the project under this section shall be made in accordance 
     with the provisions of section 8111(e)(2) of title 38, United 
     States Code, as amended by section 723(a).
       (b) Site Identification.--(1) Not later than 90 days after 
     the date of the enactment of this Act, the Secretaries shall 
     jointly identify no less than five sites for the conduct of 
     the project under this section.
       (2) For purposes of this section, a site at which the 
     resource sharing project shall be carried out is an area in 
     the United States in which--
       (A) one or more military treatment facilities and one or 
     more VA health care facilities are situated in relative 
     proximity to each other, including facilities engaged in 
     joint ventures as of the date of the enactment of this Act; 
     and
       (B) for which an agreement to coordinate care and programs 
     for patients at those facilities could be implemented not 
     later than October 1, 2004.
       (c) Conduct of Project.--(1) At sites at which the project 
     is conducted, the Secretaries shall provide a test of a 
     coordinated management system for the military treatment 
     facilities and VA health care facilities participating in the 
     project. Such a coordinated management system for a site 
     shall include at least one of the elements specified in 
     paragraph (2), and each of the elements specified in that 
     paragraph must be included in the coordinated management 
     system for at least two of the participating sites.
       (2) Elements of a coordinated management system referred to 
     in paragraph (1) are the following:
       (A) A budget and financial management system for those 
     facilities that--
       (i) provides managers with information about the costs of 
     providing health care by both Departments at the site;
       (ii) allows managers to assess the advantages and 
     disadvantages (in terms of relative costs, benefits, and 
     opportunities) of using resources of either Department to 
     provide or enhance health care to beneficiaries of either 
     Department.
       (B) A coordinated staffing and assignment system for the 
     personnel (including contract personnel) employed at or 
     assigned to those facilities, including clinical 
     practitioners of either Department.
       (C) Medical information and information technology systems 
     for those facilities that--
       (i) are compatible with the purposes of the project;
       (ii) communicate with medical information and information 
     technology systems of corresponding elements of those 
     facilities; and
       (iii) incorporate minimum standards of information quality 
     that are at least equivalent to those adopted for the 
     Departments at large in their separate health care systems.
       (d) Pharmacy Benefit.--(1) One of the elements that shall 
     be tested in at least two sites in accordance with subsection 
     (c) is a pharmacy benefit under which beneficiaries of either 
     Department shall have access, as part of the project, to 
     pharmaceutical services of the other Department participating 
     in the project.

[[Page H5569]]

       (2) The two Secretaries shall enter into a memorandum of 
     agreement to govern the establishment and provision not later 
     than October 1, 2004, of pharmaceutical services authorized 
     by this section. In the case of beneficiaries of the 
     Department of Defense, the authority under the preceding 
     sentence for such access to pharmaceutical services at a VA 
     health care facility includes authority for medications to be 
     dispensed based upon a prescription written by a licensed 
     health care practitioner who, as determined by the Secretary 
     of Defense, is a certified practitioner.
       (e) Authority To Waive Certain Administrative Policies.--
     (1)(A) In order to carry out subsections (c) and (d), the 
     Secretary of Defense may, in the Secretary's discretion, 
     waive any administrative policy of the Department of Defense 
     otherwise applicable to those subsections (including policies 
     applicable to pharmaceutical benefits) that specifically 
     conflicts with the purposes of the project, in instances in 
     which the Secretary determines that the waiver is necessary 
     for the purposes of the project.
       (B) In order to carry out subsections (c) and (d), the 
     Secretary of Veterans Affairs may, in the Secretary's 
     discretion, waive any administrative policy of the Department 
     of Veterans Affairs otherwise applicable to those subsections 
     (including policies applicable to pharmaceutical benefits) 
     that specifically conflicts with the purposes of the project, 
     in instances in which the Secretary determines that the 
     waiver is necessary for the purposes of the project.
       (C) The two Secretaries shall establish procedures for 
     resolving disputes that may arise from the effects of policy 
     changes that are not covered by other agreement or existing 
     procedures.
       (2) No waiver under paragraph (1) may alter any labor-
     management agreement in effect as of the date of the 
     enactment of this Act or adopted by either Department during 
     the period of the project.
       (f) Use by DOD of Certain Title 38 Personnel Authorities.--
     (1) In order to carry out subsections (c) and (d), the 
     Secretary of Defense may apply to civilian personnel of the 
     Department of Defense assigned to or employed at a military 
     treatment facility participating in the project any of the 
     provisions of subchapters I, III, and IV of chapter 74 of 
     title 38, United States Code, determined appropriate by the 
     Secretary.
       (2) For such purposes, any reference in such chapter--
       (A) to the ``Secretary'' or the ``Under Secretary for 
     Health'' shall be treated as referring to the Secretary of 
     Defense; and
       (B) to the ``Veterans Health Administration'' shall be 
     treated as referring to the Department of Defense.
       (g) Funding.--From amounts available for health care for a 
     fiscal year, each Secretary shall make available to carry out 
     the project not less than--
       (1) $5,000,000 for fiscal year 2003;
       (2) $10,000,000 for fiscal year 2004; and
       (3) $15,000,000 for each succeeding year during which the 
     project is in effect.
       (h) Definitions.--For purposes of this section:
       (1) The term ``military treatment facility'' means a 
     medical facility under the jurisdiction of the Secretary of a 
     military department.
       (2) The term ``VA health care facility'' means a facility 
     under the jurisdiction of the Veterans Health Administration 
     of the Department of Veterans Affairs.
       (i) Performance Requirements.--(1) The two Secretaries 
     shall provide for a joint review team to conduct an annual 
     on-site review at each of the project locations selected by 
     the Secretaries under this section. The review team shall be 
     comprised of employees of the Offices of the Inspectors 
     General of the two Departments. Leadership of the joint 
     review team shall rotate each fiscal year between an employee 
     of the Office of the Inspector General of the Department of 
     Veterans Affairs, during even-numbered fiscal years, and an 
     employee of the Office of Inspector General of the Department 
     of Defense, during odd-numbered fiscal years.
       (2) On completion of their annual joint review under 
     paragraph (1), the review team shall submit a report to the 
     two Secretaries on the results of the review. The Secretaries 
     shall forward the report, without change, to the Committees 
     on Armed Services and Veterans' Affairs of the Senate and 
     House of Representatives.
       (3) Each such report shall include the following:
       (A) The strategic mission coordination between shared 
     activities.
       (B) The accuracy and validity of performance data used to 
     evaluate sharing performance and changes in standards of care 
     or services at the shared facilities.
       (C) A statement that all appropriated funds designated for 
     sharing activities are being used for direct support of 
     sharing initiatives.
       (D) Recommendations concerning continuance of the project 
     at each site for the succeeding 12-month period.
       (4) Whenever there is a recommendation under paragraph 
     (3)(D) to discontinue a resource sharing project under this 
     section, the two Secretaries shall act upon that 
     recommendation as soon as practicable.
       (5) In the initial report under this subsection, the joint 
     review team shall validate the baseline information used for 
     comparative analysis.
       (j) Termination.--(1) The project, and the authority 
     provided by this section, shall terminate on September 30, 
     2007.
       (2) The Secretaries may terminate the performance of the 
     project at any site when the performance of the project at 
     that site fails to meet performance expectations of the 
     Secretaries, based on recommendations from the review team 
     under subsection (i) or on other information available to the 
     Secretaries to warrant such action.

     SEC. 725. REPORT ON IMPROVED COORDINATION AND SHARING OF 
                   HEALTH CARE AND HEALTH CARE RESOURCES FOLLOWING 
                   DOMESTIC ACTS OF TERRORISM OR DOMESTIC USE OF 
                   WEAPONS OF MASS DESTRUCTION.

       (a) Joint Review.--The Secretary of Defense and the 
     Secretary of Veterans Affairs shall jointly review the 
     adequacy of current processes and existing statutory 
     authorities and policy governing the capability of the 
     Department of Defense and the Department of Veterans Affairs 
     to provide health care to members of the Armed Forces 
     following domestic acts of terrorism or domestic use of 
     weapons of mass destruction, both before and after any 
     declaration of national emergency. Such review shall include 
     a determination of the adequacy of current authorities in 
     providing for the coordination and sharing of health care 
     resources between the two Departments in such cases, 
     particularly before the declaration of a national emergency.
       (b) Report to Congress.--A report on the review under 
     subsection (a), including any recommended legislative 
     changes, shall be submitted to Congress as part of the fiscal 
     year 2004 budget submission.

     SEC. 726. ADOPTION BY DEPARTMENT OF VETERANS AFFAIRS OF 
                   DEPARTMENT OF DEFENSE PHARMACY DATA TRANSACTION 
                   SYSTEM.

       (a) Adoption of PDTS System.--The Secretary of Veterans 
     Affairs shall adopt for use by the Department of Veterans 
     Affairs health care system the system of the Department of 
     Defense known as the ``Pharmacy Data Transaction System''. 
     Such system shall be fully operational for the Department of 
     Veterans Affairs not later than October 1, 2004.
       (b) Implementation Funding.--The Secretary of Defense shall 
     transfer to the Secretary of Veterans Affairs, or shall 
     otherwise bear the cost of, an amount sufficient to cover 
     three-fourths of the cost to the Department of Veterans 
     Affairs for initial computer programming activities and 
     relevant staff training expenses related to implementation of 
     subsection (a). Such amount shall be determined in such 
     manner as agreed to by the two Secretaries.
       (c) Reimbursement Procedures.--Any reimbursement by the 
     Department of Veterans Affairs to the Department of Defense 
     for the use by the Department of Veterans Affairs of the 
     transaction system under subsection (a) shall be determined 
     in accordance with section 8111(e)(2) of title 38, United 
     States Code, as amended by section 723.

     SEC. 727. JOINT PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL 
                   EDUCATION AND TRAINING FOR PHYSICIANS.

       (a) In General.--The Secretary of Defense and the Secretary 
     of Veterans Affairs shall jointly carry out a pilot program 
     under which graduate medical education and training is 
     provided to military physicians and physician employees of 
     the Department of Defense and the Department of Veterans 
     Affairs through one or more programs carried out in military 
     medical treatment facilities of the Department of Defense and 
     medical centers of the Department of Veterans Affairs. The 
     pilot program shall begin not later than January 1, 2003.
       (b) Cost-Sharing Agreement.--The Secretaries shall enter 
     into an agreement for carrying out the pilot program. The 
     agreement shall establish means for each Secretary to assist 
     in paying the costs, with respect to individuals under the 
     jurisdiction of that Secretary, incurred by the other 
     Secretary in providing medical education and training under 
     the pilot program.
       (c) Use of Existing Authorities.--To carry out the pilot 
     program, the Secretary of Defense and the Secretary of 
     Veterans Affairs may use authorities provided to them under 
     this Act, section 8111 of title 38, United States Code, and 
     other laws relating to the furnishing or support of medical 
     education and the cooperative use of facilities.
       (d) Termination of Program.--The pilot program under this 
     section shall terminate on July 31, 2008.
       (e) Repeal of Superseded Provision.--Section 738 of the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107; 10 U.S.C. 1094 note; 115 Stat.1173) is 
     repealed.

     SEC. 728. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF VETERANS 
                   AFFAIRS RESOURCES.

       (a) Repeal of VA Bed Limits.--Section 8110(a)(1) of title 
     38, United States Code, is amended--
       (1) in the first sentence, by striking ``at not more than 
     125,000 and not less than 100,000'';
       (2) in the third sentence, by striking ``shall operate and 
     maintain a total of not less than 90,000 hospital beds and 
     nursing home beds and''; and
       (3) in the fourth sentence, by striking ``to enable the 
     Department to operate and maintain a total of not less than 
     90,000 hospital and nursing home beds in accordance with this 
     paragraph and''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2003.

[[Page H5570]]

     SEC. 729. REPORTS.

       (a) Interim Report.--Not later than February 1, 2004, the 
     Secretary of Defense and Secretary of Veterans Affairs shall 
     submit to the Committees on Veterans' Affairs and the 
     Committees on Armed Services of the Senate and House of 
     Representatives a joint report on their conduct of each of 
     the programs under this Act through the end of the preceding 
     fiscal year. The Secretaries shall include in the report a 
     description of the measures taken, or planned to be taken, to 
     implement the health resources sharing project under section 
     724 and the other provisions of this Act and any cost savings 
     anticipated, or cost sharing achieved, at facilities 
     participating in the project. The report shall also include 
     information on improvements in access to care, quality, and 
     timeliness, as well as impediments encountered and 
     legislative recommendations to ameliorate such impediments.
       (b) Annual Report on Use of Waiver Authority.--Not later 
     than one year after the date of the enactment of this Act, 
     and annually thereafter through completion of the project 
     under section 724, the two Secretaries shall submit to the 
     committees of Congress specified in subsection (a) a joint 
     report on the use of the waiver authority provided by section 
     724(e)(1). The report shall include a statement of the 
     numbers and types of requests for waivers under that section 
     of administrative policies that have been made during the 
     period covered by the report and, for each such request, an 
     explanation of the content of each request, the intended 
     purpose or result of the requested waiver, and the 
     disposition of each request. The report also shall include 
     descriptions of any new administrative policies that enhance 
     the success of the project.
       (c) Pharmacy Benefits Report.--Not later than one year 
     after pharmaceutical services are first provided pursuant to 
     section 724(d)(1), the two Secretaries shall submit to the 
     committees of Congress specified in subsection (a) a joint 
     report on access by beneficiaries of each department to 
     pharmaceutical services of the other department. The report 
     shall describe the advantages and disadvantages to the 
     beneficiaries and the Departments of providing such access 
     and any other matters related to such pharmaceutical services 
     that the Secretaries consider pertinent, together with any 
     legislative recommendations for expanding or canceling such 
     services.
       (d) Annual Report on Pilot Program for Graduate Medical 
     Education.--Not later than January 31, 2004, and January 31 
     of each year thereafter through 2009, the two Secretaries 
     shall submit to Congress a joint report on the pilot program 
     under section 727. The report for any year shall cover 
     activities under the program during the preceding year and 
     shall include each Secretary's assessment of the efficacy of 
     providing education and training under that program.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

     SEC. 801. PLAN FOR ACQUISITION MANAGEMENT PROFESSIONAL 
                   EXCHANGE PILOT PROGRAM.

       (a) Plan Required.--(1) The Secretary of Defense shall 
     develop a plan for a pilot program under which--
       (A) an individual in the field of acquisition management 
     employed by the Department of Defense may be temporarily 
     assigned to work in a private sector organization; and
       (B) an individual in such field employed by a private 
     sector organization may be temporarily assigned to work in 
     the Department of Defense.
       (2) In developing the plan under paragraph (1), the 
     Secretary shall address the following:
       (A) The benefits of undertaking such a program.
       (B) The appropriate length of assignments under the 
     program.
       (C) Whether an individual assigned under the program should 
     be compensated by the organization to which the individual is 
     assigned, or the organization from which the individual is 
     assigned.
       (D) The ethics guidelines that should be applied to the 
     program and, if necessary, waivers of ethics laws that would 
     be needed in order to make the program effective and 
     attractive to both Government and private sector employees.
       (E) An assessment of how compensation of individuals 
     suffering employment-related injuries under the program 
     should be addressed.
       (b) Submission to Congress.--Not later than February 1, 
     2003, the Secretary shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives the 
     plan required under subsection (a).

     SEC. 802. EVALUATION OF TRAINING, KNOWLEDGE, AND RESOURCES 
                   REGARDING NEGOTIATION OF INTELLECTUAL PROPERTY 
                   ARRANGEMENTS.

       (a) Availability of Training, Knowledge, and Resources.--
     The Secretary of Defense shall evaluate the training, 
     knowledge, and resources needed by the Department of Defense 
     in order to effectively negotiate intellectual property 
     rights using the principles of the Defense Federal 
     Acquisition Regulation Supplement and determine whether the 
     Department of Defense currently has in place the training, 
     knowledge, and resources available to meet those Departmental 
     needs.
       (b) Report.--Not later than February 1, 2003, the Secretary 
     of Defense shall submit to Congress a report describing--
       (1) the results of the evaluation performed under 
     subsection (a);
       (2) to the extent the Department does not have adequate 
     training, knowledge, and resources available, actions to be 
     taken to improve training and knowledge and to make resources 
     available to meet the Department's needs; and
       (3) the number of Department of Defense legal personnel 
     trained in negotiating intellectual property arrangements.

     SEC. 803. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER 
                   CONTRACTS.

       Chapter 137 of title 10, United States Code, is amended--
       (1) in section 2304a--
       (A) in subsection (e)--
       (i) by inserting ``(1)'' before ``A task''; and
       (ii) by adding at the end the following new paragraphs:
       ``(2) Unless use of procedures other than competitive 
     procedures is authorized by an exception in subsection (c) of 
     section 2304 of this title and approved in accordance with 
     subsection (f) of such section, competitive procedures shall 
     be used for making such a modification.
       ``(3) Notice regarding the modification shall be provided 
     in accordance with section 18 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 416) and section 8(e) of 
     the Small Business Act (15 U.S.C. 637(e)).''; and
       (B) by striking subsection (f) and inserting the following:
       ``(f) Limitation on Contract Period.--The base period of a 
     task order contract or delivery order contract entered into 
     under this section may not exceed five years unless a longer 
     period is specifically authorized in a law that is applicable 
     to such contract. The contract may be extended for an 
     additional 5 years (for a total contract period of not more 
     than 10 years) through modifications, options, or 
     otherwise.''; and
       (2) in section 2304b--
       (A) by striking subsection (a) and inserting the following:
       ``(a) In General.--A task order contract (as defined in 
     section 2304d of this title) for procurement of advisory and 
     assistance services shall be subject to the requirements of 
     this section, sections 2304a and 2304c of this title, and 
     other applicable provisions of law.'';
       (B) by striking subsections (b), (f), and (g) and 
     redesignating subsections (c), (d), (e), (h), and (i) as 
     subsections (b) through (f);
       (C) by amending subsection (c) (as redesignated by 
     subparagraph (B)) to read as follows:
       ``(c) Required Content of Contract.--A task order contract 
     described in subsection (a) shall contain the same 
     information that is required by section 2304a(b) to be 
     included in the solicitation of offers for that contract.''; 
     and
       (D) in subsection (d) (as redesignated by subparagraph 
     (B))--
       (i) in paragraph (1), by striking ``under this section'' 
     and inserting ``described in subsection (a)''; and
       (ii) in paragraph (2), by striking ``under this section''.

     SEC. 804. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED 
                   PROCEDURES TO CERTAIN COMMERCIAL ITEMS; REPORT.

       (a) Extension of Pilot Program.--Section 4202 of the 
     Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
     104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended in 
     subsection (e) by striking ``January 1, 2003'' and inserting 
     ``January 1, 2004''.
       (b) Report Required.--Not later than January 15, 2003, the 
     Secretary of Defense shall submit to Congress a report on 
     whether the authority to issue solicitations for purchases of 
     commercial items in excess of the simplified acquisition 
     threshold pursuant to the special simplified procedures 
     authorized by section 2304(g)(1) of title 10, United States 
     Code, section 303(g)(1) of the Federal Property and 
     Administrative Services Act of 1949, and section 31(a) of the 
     Office of Federal Procurement Policy Act, should be made 
     permanent.

     SEC. 805. AUTHORITY TO MAKE INFLATION ADJUSTMENTS TO 
                   SIMPLIFIED ACQUISITION THRESHOLD.

       Section 4(11) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403(11)) is amended by inserting ``, except 
     that such amount may be adjusted by the Administrator every 
     five years to the amount equal to $100,000 in constant fiscal 
     year 2002 dollars (rounded to the nearest $10,000)'' before 
     the period at the end.

     SEC. 806. IMPROVEMENT OF PERSONNEL MANAGEMENT POLICIES AND 
                   PROCEDURES APPLICABLE TO THE CIVILIAN 
                   ACQUISITION WORKFORCE.

       (a) Plan Required.--The Secretary of Defense shall develop 
     a plan for improving the personnel management policies and 
     procedures applicable to the Department of Defense civilian 
     acquisition workforce based on the results of the 
     demonstration project described in section 4308 of the 
     Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 
     10 U.S.C. 1701 note).
       (b) Submission to Congress.--Not later than February 15, 
     2003, the Secretary shall submit to Congress the plan 
     required under subsection (a) and a report including any 
     recommendations for legislative action necessary to implement 
     the plan.

     SEC. 807. MODIFICATION OF SCOPE OF BALL AND ROLLER BEARINGS 
                   COVERED FOR PURPOSES OF PROCUREMENT LIMITATION.

       Section 2534(a)(5) of title 10, United States Code is 
     amended--
       (1) by striking ``225.71'' and inserting ``225.70'';

[[Page H5571]]

       (2) by striking ``October 23, 1992'' and inserting ``April 
     27, 2002''; and
       (3) by adding at the end the following: ``In this section 
     the term `ball bearings and roller bearings' includes 
     unconventional or hybrid ball and roller bearings and cam 
     follower bearings, ball screws, and other derivatives of ball 
     and roller bearings.''.

     SEC. 808. RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

       (a) Requirement To Establish Procedures.--Chapter 141 of 
     title 10, United States Code, is amended by inserting after 
     section 2396 the following new section:

     ``Sec. 2397. Rapid acquisition and deployment procedures

       ``(a) Establishment.--The Secretary of Defense shall 
     establish tailored rapid acquisition and deployment 
     procedures for items urgently needed to react to an enemy 
     threat or to respond to significant and urgent safety 
     situations.
       ``(b) Procedures.--The procedures established under 
     subsection (a) shall include the following:
       ``(1) A process for streamlined communications between the 
     Chairman of the Joint Chiefs of Staff, the acquisition 
     community, and the testing community.
       ``(2) A process for expedited technical, programmatic, and 
     financial decisions.
       ``(3) An expedited procurement and contracting process.
       ``(c) Specific Steps To Be Included.--The procedures 
     established under subsection (a) shall provide for the 
     following:
       ``(1) The commander of a unified combatant command may 
     notify the Chairman of the Joint Chiefs of Staff of the need 
     for an item described in subsection (a) that is currently 
     under development.
       ``(2) The Chairman may request the Secretary of Defense to 
     use rapid acquisition and deployment procedures with respect 
     to the item.
       ``(3) The Secretary of Defense shall decide whether to use 
     such procedures with respect to the item and shall notify the 
     Secretary of the appropriate military department of the 
     decision.
       ``(4) If the Secretary of Defense decides to use such 
     procedures with respect to the item, the Secretary of the 
     military department shall prepare a funding strategy for the 
     rapid acquisition of the item and shall conduct a 
     demonstration of the performance of the item.
       ``(5) The Director of Operational Test and Evaluation shall 
     immediately evaluate the existing capability of the item (but 
     under such evaluation shall not assess the capability of the 
     item as regards to the function the item was originally 
     intended to perform).
       ``(6) The Chairman of the Joint Chiefs of Staff shall 
     review the evaluation of the Director of Operational Test and 
     Evaluation and report to the Secretary of Defense regarding 
     whether the capabilities of the tested item are able to meet 
     the urgent need for the item.
       ``(7) The Secretary of Defense shall evaluate the 
     information regarding funding and rapid acquisition prepared 
     pursuant to paragraph (4) and approve or disapprove of the 
     acquisition of the item using the procedures established 
     pursuant to subsection (a).
       ``(d) Limitation.--The quantity of items of a system 
     procured using the procedures established under this section 
     may not exceed the number established for low-rate initial 
     production for the system, and any such items shall be 
     counted for purposes of the number of items of the system 
     that may be procured through low-rate initial production.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2396 the following new item:

``2397. Rapid acquisition and deployment procedures.''.

     SEC. 809. QUICK-REACTION SPECIAL PROJECTS ACQUISITION TEAM.

       (a) Establishment.--Chapter 141 of title 10, United States 
     Code, is amended by inserting after section 2402 the 
     following new section:

     ``Sec. 2403. Quick-reaction special projects acquisition team

       ``The Secretary of Defense shall establish a quick-reaction 
     special projects acquisition team, the purpose of which shall 
     be to advise the Secretary on actions that can be taken to 
     expedite the procurement of urgently needed systems. The team 
     shall address problems with the intention of creating 
     expeditious solutions relating to--
       ``(1) industrial-base issues such as the limited 
     availability of suppliers;
       ``(2) compliance with acquisition regulations and lengthy 
     procedures;
       ``(3) compliance with environmental requirements;
       ``(4) compliance with requirements regarding small-business 
     concerns; and
       ``(5) compliance with requirements regarding the purchase 
     of products made in the United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2402 the following new item:

``2403. Quick-reaction special projects acquisition team.''.

     SEC. 810. REPORT ON DEVELOPMENT OF ANTI-CYBERTERRORISM 
                   TECHNOLOGY.

       Not later than February 1, 2003, the Secretary of Defense 
     shall submit to Congress a report on--
       (1) efforts by the Department of Defense to enter into 
     contracts with private entities to develop anticyberterrorism 
     technology; and
       (2) whether such efforts should be increased.

     SEC. 811. CONTRACTING WITH FEDERAL PRISON INDUSTRIES.

       (a) Assuring Best Value for National Defense and Homeland 
     Security.--(1) The Department of Defense or one of the 
     military departments may acquire a product or service from 
     Federal Prison Industries, Inc. only if such acquisition is 
     made through a procurement contract awarded and administered 
     in accordance with chapter 137 of title 10, United States 
     Code, the Federal Acquisition Regulation, and the Department 
     of Defense supplements to such regulation. If a contract is 
     to be awarded to Federal Prison Industries, Inc. by the 
     Department of Defense through other than competitive 
     procedures, authority for such award shall be based upon 
     statutory authority other than chapter 307 of title 18, 
     United States Code.
       (2) The Secretary of Defense shall assure that--
       (A) no purchase of a product or a service is made by the 
     Department of Defense from Federal Prison Industries, Inc. 
     unless the contracting officer determines that--
       (i) the product or service can be timely furnished and will 
     meet the performance needs of the activity that requires the 
     product or service; and
       (ii) the price to be paid does not exceed a fair market 
     price determined by competition or a fair and reasonable 
     price determined by price analysis or cost analysis; and
       (B) Federal Prison Industries, Inc. performs its 
     contractual obligations to the same extent as any other 
     contractor for the Department of Defense.
       (b) Performance as a Subcontractor.--(1) The use of Federal 
     Prison Industries, Inc. as a subcontractor or supplier shall 
     be a wholly voluntary business decision by a Department of 
     Defense prime contractor or subcontractor, subject to any 
     prior approval of subcontractors or suppliers by the 
     contracting officer which may be imposed by regulation or by 
     the contract.
       (2) A defense contractor (or subcontractor at any tier) 
     using Federal Prison Industries, Inc. as a subcontractor or 
     supplier in furnishing a commercial product pursuant to a 
     contract shall implement appropriate management procedures to 
     prevent introducing an inmate-produced product or inmate-
     furnished services into the commercial market.
       (3) Except as authorized under the Federal Acquisition 
     Regulation, the use of Federal Prison Industries, Inc. as a 
     subcontractor or supplier of products or provider of services 
     shall not be imposed upon prospective or actual defense prime 
     contractors or subcontractors at any tier by means of--
       (A) a contract solicitation provision requiring a 
     contractor to offer to make use of Federal Prison Industries, 
     Inc. its products or services;
       (B) specifications requiring the contractor to use specific 
     products or services (or classes of products or services) 
     offered by Federal Prison Industries, Inc. in the performance 
     of the contract;
       (C) any contract modification directing the use of Federal 
     Prison Industries, Inc. its products or services; or
       (D) any other means.
       (c) Protection of Classified and Sensitive Information.--
     The Secretary of Defense shall assure that Federal Prison 
     Industries, Inc. is not permitted to provide services as a 
     contractor or subcontractor at any tier, if an inmate worker 
     has access to--
       (1) data that is classified or will become classified after 
     being merged with other data;
       (2) geographic data regarding the location of surface and 
     subsurface infrastructure providing communications, water and 
     electrical power distribution, pipelines for the distribution 
     of natural gas, bulk petroleum products and other 
     commodities, and other utilities; or
       (3) personal or financial information about individual 
     private citizens, including information relating to such 
     person's real property, however described, without giving 
     prior notice to such persons or class of persons to the 
     greatest extent practicable.
       (d) Regulatory Implementation.--
       (1) Proposed regulations.--Proposed revisions to the 
     Department of Defense Supplement to the Federal Acquisition 
     Regulation to implement this section shall be published not 
     later than 90 days after the date of enactment of this Act 
     and provide not less than 60 days for public comment.
       (2) Final regulations.--Final regulations shall be 
     published not later than 180 days after the date of the 
     enactment of this Act and shall be effective on the date that 
     is 30 days after the date of publication.

     SEC. 812. RENEWAL OF CERTAIN PROCUREMENT TECHNICAL ASSISTANCE 
                   COOPERATIVE AGREEMENTS AT FUNDING LEVELS AT 
                   LEAST SUFFICIENT TO SUPPORT EXISTING PROGRAMS.

       Section 2413 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d) With respect to any eligible entity that has 
     successfully performed under a cooperative agreement entered 
     into under subsection (a), the Secretary shall strive, to the 
     greatest extent practicable and subject to appropriations, to 
     renew such agreement with such entity at a level of funding 
     which is at least equal to the level of funding under the 
     cooperative agreement being renewed.''.

[[Page H5572]]

                        TITLE IX--DEPARTMENT OF 
                  DEFENSE ORGANIZATION AND MANAGEMENT

     SEC. 901. CHANGE IN TITLE OF SECRETARY OF THE NAVY TO 
                   SECRETARY OF THE NAVY AND MARINE CORPS.

       (a) Change in Title.--The position of the Secretary of the 
     Navy is hereby redesignated as the Secretary of the Navy and 
     Marine Corps.
       (b) References.--Any reference to the Secretary of the Navy 
     in any law, regulation, document, record, or other paper of 
     the United States shall be considered to be a reference to 
     the Secretary of the Navy and Marine Corps.

     SEC. 902. REPORT ON IMPLEMENTATION OF UNITED STATES NORTHERN 
                   COMMAND.

       Not later than September 1, 2002, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report providing an 
     implementation plan for the United States Northern Command. 
     The report shall address the following:
       (1) The required budget for standing-up and maintaining 
     that command.
       (2) The location of the headquarters of that command and 
     alternatives considered for that location, together with the 
     criteria used in selection of that location.
       (3) The required manning levels for the command, the effect 
     that command will have on current Department of Defense 
     personnel resources, and the other commands from which 
     personnel will be transferred to provide personnel for that 
     command.
       (4) The chain of command within that command to the 
     component command level and a review of permanently assigned 
     or tasked organizations and units.
       (5) The relationship of that command to the Office of 
     Homeland Security and the Homeland Security Council, to other 
     Federal departments and agencies, and to State and local law 
     enforcement agencies.
       (6) The relationship of that command with the National 
     Guard Bureau, individual State National Guard Headquarters, 
     and civil first responders to ensure continuity of 
     operational plans.
       (7) The legal implications of military forces in their 
     Federal capacity operating on United States territory.
       (8) The status of Department of Defense consultations--
       (A) with Canada regarding Canada's role in, and any 
     expansion of mission for, the North American Air Defense 
     Command; and
       (B) with Mexico regarding Mexico's role in the United 
     States Northern Command.
       (9) The status of Department of Defense consultations with 
     NATO member nations on efforts to transfer the Supreme Allied 
     Command for the Atlantic from dual assignment with the 
     position of commander of the United States Joint Forces 
     Command.
       (10) The revised mission, budget, and personnel resources 
     required for the United States Joint Forces Command.

     SEC. 903. NATIONAL DEFENSE MISSION OF COAST GUARD TO BE 
                   INCLUDED IN FUTURE QUADRENNIAL DEFENSE REVIEWS.

       Section 118(d) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (14) as paragraph (15); and
       (2) by inserting after paragraph (13) the following new 
     paragraph:
       ``(14) The national defense mission of the Coast Guard.''.

     SEC. 904. CHANGE IN YEAR FOR SUBMISSION OF QUADRENNIAL 
                   DEFENSE REVIEW.

       Section 118(a) of title 10, United States Code, is amended 
     by striking ``during a year'' and inserting ``during the 
     second year''.

     SEC. 905. REPORT ON EFFECT OF OPERATIONS OTHER THAN WAR ON 
                   COMBAT READINESS OF THE ARMED FORCES.

       (a) Report Required.--Not later than February 28, 2004, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the effect on the 
     combat readiness of the Armed Forces of operations other than 
     war in which the Armed Forces are participating as of the 
     date of the enactment of this Act (hereinafter in this 
     section referred to as ``current operations other than 
     war''). Such report shall address any such effect on combat 
     readiness for the Armed Forces as a whole and separately for 
     the active components and the reserve components.
       (b) Operations Other Than War.--For purposes of this 
     section, the term ``operations other than war'' includes the 
     followng:
       (1) Humanitarian operations.
       (2) Counter-drug operations.
       (3) Peace operations.
       (4) Nation assistance.
       (c) Matters To Be Addressed.--The report shall, at a 
     minimum, address the following (shown both for the Armed 
     Forces as a whole and separately for the active components 
     and the reserve components):
       (1) With respect to each current operation other than war, 
     the number of members of the Armed Forces who are--
       (A) directly participating in the operation;
       (B) supporting the operation;
       (C) preparing to participate or support an upcoming 
     rotation to the operation; or
       (D) recovering and retraining following participation in 
     the operation.
       (2) The cost to the Department of Defense in time, funds, 
     resources, personnel, and equipment to prepare for, conduct, 
     and recover and retrain from each such operation.
       (3) The effect of participating in such operations on 
     performance, retention, and readiness of individual members 
     of the Armed Forces.
       (4) The effect of such operations on the readiness of 
     forces and units participating, preparing to participate, and 
     returning from participation in such operations.
       (5) The effect that such operations have on forces and 
     units that do not, have not, and will not participate in 
     them.
       (6) The contribution to United States national security and 
     to regional stability of participation by the United States 
     in such operations, to be assessed after receiving the views 
     of the commanders of the regional unified combatant commands.
       (d) Classification of Report.--The report may be provided 
     in classified or unclassified form as necessary.

     SEC. 906. CONFORMING AMENDMENT TO REFLECT DISESTABLISHMENT OF 
                   DEPARTMENT OF DEFENSE CONSEQUENCE MANAGEMENT 
                   PROGRAM INTEGRATION OFFICE.

       Section 12310(c)(3) of title 10, United States Code, is 
     amended by striking ``only--'' and all that follows through 
     ``(B) while assigned'' and inserting ``only while assigned''.

     SEC. 907. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DEFENSE 
                   UNIVERSITY.

       (a) In General.--Section 2605 of title 10, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' after ``administration of''; and
       (B) by inserting before the period at the end of the first 
     sentence ``, or (2) the National Defense University'';
       (2) in subsection (b)--
       (A) by inserting ``(1)'' after ``(b)'';
       (B) by striking ``subsection (a)'' and inserting 
     ``subsection (a)(1)'';
       (C) by designating the last sentence as paragraph (3) and 
     in that sentence by inserting ``or for the benefit or use of 
     the National Defense University, as the case may be,'' after 
     ``schools,''; and
       (D) by inserting before paragraph (3), as designated by 
     subparagraph (C), the following:
       ``(2) There is established in the Treasury a fund to be 
     known as the `National Defense University Gift Fund'. Gifts 
     of money, and the proceeds of the sale of property, received 
     under subsection (a)(2) shall be deposited in the Fund.'';
       (3) in subsection (d)(1)(A), by inserting ``and the 
     National Defense University Gift Fund'' before the semicolon; 
     and
       (4) by adding at the end the following new subsection:
       ``(h) In this section, the term `National Defense 
     University' includes any school or other component of the 
     National Defense University.''.
       (b) Clerical Amendment.--(1) The heading of such section is 
     amended to read as follows:

     ``Sec. 2605. Acceptance of gifts for defense dependents' 
       schools and National Defense University''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 151 of such title is 
     amended to read as follows:

``2605. Acceptance of gifts for defense dependents' schools and 
              National Defense University.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 2003 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $2,000,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR 
                   FISCAL YEAR 2002.

       (a) DOD Authorizations.--Amounts authorized to be 
     appropriated to the Department of Defense for fiscal year 
     2002 in the National Defense Authorization Act for Fiscal 
     Year 2002 (Public Law 107-107) are hereby adjusted, with 
     respect to any such authorized amount, by the amount by which 
     appropriations pursuant to such authorization are increased 
     (by a supplemental appropriation) or decreased (by a 
     rescission), or both, or are increased by a transfer of 
     funds, pursuant to the following:

[[Page H5573]]

       (1) Chapter 3 of the Emergency Supplemental Act, 2002 
     (division B of Public Law 107-117; 115 Stat. 2299).
       (2) Any Act enacted after May 1, 2002, making supplemental 
     appropriations for fiscal year 2002 for the military 
     functions of the Department of Defense.
       (b) NNSA Authorizations.--Amounts authorized to be 
     appropriated to the Department of Energy for fiscal year 2002 
     in the National Defense Authorization Act for Fiscal Year 
     2002 (Public Law 107-107) are hereby adjusted, with respect 
     to any such authorized amount, by the amount by which 
     appropriations pursuant to such authorization are increased 
     (by a supplemental appropriation) or decreased (by a 
     rescission), or both, or are increased by a transfer of 
     funds, pursuant to the following:
       (1) Chapter 5 of the Emergency Supplemental Act, 2002 
     (division B of Public Law 107-117; 115 Stat. 2307).
       (2) Any Act enacted after May 1, 2002, making supplemental 
     appropriations for fiscal year 2002 for the atomic energy 
     defense activities of the Department of Energy.
       (c) Limitation on Transfers Pending Submission of Report.--
     Any amount provided for the Department of Defense for fiscal 
     year 2002 through a so-called `transfer account'', including 
     the Defense Emergency Response Fund or any other similar 
     account, may be transferred to another account for obligation 
     only after the Secretary of Defense submits to the 
     congressional defense committees a report stating, for each 
     such transfer, the amount of the transfer, the appropriation 
     account to which the transfer is to be made, and the specific 
     purpose for which the transferred funds will be used.
       (d) Emergency Designation Requirement.--(1) In the case of 
     a pending contingent emergency supplemental appropriation for 
     the military functions of the Department of Defense or the 
     atomic energy defense activities of the Department of Energy, 
     an adjustment may be made under subsection (a) or (b) in the 
     amount of an authorization of appropriations by reason of 
     that supplemental appropriation only if, and to the extent 
     that, the President transmits to Congress an official budget 
     request for that appropriation that designates the entire 
     amount requested as an emergency requirement.
       (2) For purposes of this subsection, the term ``contingent 
     emergency supplemental appropriation'' means a supplemental 
     appropriation that--
       (A) is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985; and
       (B) by law is available only to the extent that the 
     President transmits to the Congress an official budget 
     request for that appropriation that includes designation of 
     the entire amount of the request as an emergency requirement.

     SEC. 1003. UNIFORM STANDARDS THROUGHOUT DEPARTMENT OF DEFENSE 
                   FOR EXPOSURE OF PERSONNEL TO PECUNIARY 
                   LIABILITY FOR LOSS OF GOVERNMENT PROPERTY.

       (a) Extension of Army and Air Force Report-of-Survey 
     Procedures to Navy and Marine Corps and all DOD Civilian 
     Employees.--(1) Chapter 165 of title 10, United States Code, 
     is amended by adding at the end the following new section:

     ``Sec. 2787. Reports of survey

       ``(a) Regulations.--Under such regulations as the Secretary 
     of Defense may prescribe, any officer of the Army, Navy, Air 
     Force, or Marine Corps or any civilian employee of the 
     Department of Defense designated by the Secretary may act 
     upon reports of surveys and vouchers pertaining to the loss, 
     spoilage, unserviceability, unsuitability, or destruction of, 
     or damage to, property of the United States under the control 
     of the Department of Defense.
       ``(b) Finality of Action.--Action taken under subsection 
     (a) is final, except that action holding a person pecuniarily 
     liable for loss, spoilage, destruction, or damage is not 
     final until approved by the Secretary.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2787. Reports of survey.''.

       (b) Extension to Members of the Navy and Marine Corps of 
     Pay Deduction Authority Pertaining to Damage or Repair of 
     Arms and Equipment .--Section 1007(e) of title 37, United 
     States Code, is amended by striking ``Army or the Air Force'' 
     and inserting ``Army, Navy, Air Force, or Marine Corps''.
       (c) Repeal of Superceded Provisions.--(1) Sections 4835 and 
     9835 of title 10, United States Code, are repealed.
       (2)(A) The table of sections at the beginning of chapter 
     453 of such title is amended by striking the item relating to 
     section 4835.
       (B) The table of sections at the beginning of chapter 953 
     of such title is amended by striking the item relating to 
     section 9835.

     SEC. 1004. ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF 
                   DEFENSE.

       (a) Accountable Officials Within the Department of 
     Defense.--Chapter 165 of title 10, United States Code, is 
     amended by inserting after section 2773 the following new 
     section:

     ``Sec. 2773a. Departmental accountable officials

       ``(a) Designation.--(1) The Secretary of Defense may 
     designate as a `departmental accountable official' any 
     civilian employee of the Department of Defense or member of 
     the armed forces under the Secretary's jurisdiction who is 
     described in paragraph (2). Any such designation shall be in 
     writing.
       ``(2) An employee or member of the armed forces described 
     in this paragraph is an employee or member who is responsible 
     in the performance of the employee's or member's duties for 
     providing to a certifying official of the Department of 
     Defense information, data, or services that are directly 
     relied upon by the certifying official in the certification 
     of vouchers for payment.
       ``(b) Pecuniary Liability.--(1) The Secretary of Defense 
     may impose pecuniary liability on a departmental accountable 
     official to the extent that an illegal, improper, or 
     incorrect payment results from the information, data, or 
     services that that official provides to a certifying official 
     and upon which the certifying official directly relies in 
     certifying the voucher supporting that payment.
       ``(2) The pecuniary liability of a departmental accountable 
     official under this subsection for such an illegal, improper, 
     or incorrect payment is joint and several with that of any 
     other officials who are pecuniarily liable for such payment.
       ``(c) Relief from Liability.--The Secretary of Defense 
     shall relieve a departmental accountable official from 
     liability under subsection (b) if the Secretary determines 
     that the illegal, improper, or incorrect payment was not the 
     result of fault or negligence by that official.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2773 the following new item:

``2773a. Departmental accountable officials.''.

     SEC. 1005. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT.

       (a) In General.--Section 2784 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 2784. Management of purchase cards

       ``(a) Management of Purchase Cards.--The Secretary of 
     Defense, acting through the Under Secretary of Defense 
     (Comptroller), shall prescribe regulations governing the use 
     and control of all purchase cards and convenience checks that 
     are issued to Department of Defense personnel for official 
     use. Those regulations shall be consistent with regulations 
     that apply Government-wide regarding use of purchase cards by 
     Government personnel for official purposes.
       ``(b) Required Safeguards and Internal Controls.--
     Regulations under subsection (a) shall include safeguards and 
     internal controls to ensure the following:
       ``(1) That there is a record in the Department of Defense 
     of each holder of a purchase card issued by the Department of 
     Defense for official use, annotated with the limitations on 
     amounts that are applicable to the use of each such card by 
     that purchase card holder.
       ``(2) That the holder of a purchase card and each official 
     with authority to authorize expenditures charged to the 
     purchase card are responsible for--
       ``(A) reconciling the charges appearing on each statement 
     of account for that purchase card with receipts and other 
     supporting documentation; and
       ``(B) forwarding that statement after being so reconciled 
     to the designated disbursing office in a timely manner.
       ``(3) That any disputed purchase card charge, and any 
     discrepancy between a receipt and other supporting 
     documentation and the purchase card statement of account, is 
     resolved in the manner prescribed in the applicable 
     Government-wide purchase card contract entered into by the 
     Administrator of General Services.
       ``(4) That payments on purchase card accounts are made 
     promptly within prescribed deadlines to avoid interest 
     penalties.
       ``(5) That rebates and refunds based on prompt payment on 
     purchase card accounts are properly recorded.
       ``(6) That records of each purchase card transaction 
     (including records on associated contracts, reports, 
     accounts, and invoices) are retained in accordance with 
     standard Government policies on the disposition of records.
       ``(7) That an annual review is performed of the use of 
     purchase cards issued by the Department of Defense to 
     determine whether each purchase card holder has a need for 
     the purchase card.
       ``(8) That the Inspectors General of the Department of 
     Defense and the military services perform periodic audits 
     with respect to the use of purchase cards issued by the 
     Department of Defense to ensure that such use is in 
     compliance with regulations.
       ``(9) That appropriate annual training is provided to each 
     purchase card holder and each official with responsibility 
     for overseeing the use of purchase cards issued by the 
     Department of Defense.
       ``(c) Penalties for Violations.--The Secretary shall 
     provide in the regulations prescribed under subsection (a)--
       ``(1) that procedures are implemented providing for 
     appropriate punishment of employees of the Department of 
     Defense for violations of such regulations and for 
     negligence, misuse, abuse, or fraud with respect to a 
     purchase card, including dismissal in appropriate cases; and
       ``(2) that a violation of such regulations by a person 
     subject to chapter 47 of this title (the Uniform Code of 
     Military Justice) is punishable as a violation of section 892 
     of this title (article 92 of the Uniform Code of Military 
     Justice).''.
       (b) Clerical Amendment.--The item relating to section 2784 
     in the table of sections at

[[Page H5574]]

     the beginning of chapter 165 of such title is amended to read 
     as follows:

``2784. Management of purchase cards.''.

     SEC. 1006. AUTHORITY TO TRANSFER FUNDS WITHIN A MAJOR 
                   ACQUISITION PROGRAM FROM PROCUREMENT TO RDT&E.

       (a) Program Flexibility.--(1) Chapter 131 of title 10, 
     United States Code, is amended by inserting after section 
     2214 the following new section:

     ``Sec. 2214a. Transfer of funds: transfers from procurement 
       accounts to research and development accounts for major 
       acquisition programs

       ``(a) Transfer Authority Within Major Programs.--Subject to 
     subsection (b), the Secretary of Defense may transfer amounts 
     provided in an appropriation Act for procurement for a 
     covered acquisition program to amounts provided in the same 
     appropriation Act for research, development, test, and 
     evaluation for that program.
       ``(b) Congressional Notice-and-Wait.--A transfer may be 
     made under this section only after--
       ``(1) the Secretary submits to the congressional defense 
     committees notice in writing of the Secretary's intent to 
     make such transfer, together with the Secretary's 
     justification for the transfer; and
       ``(2) a period of 30 days has elapsed following the date of 
     such notification.
       ``(c) Limitations.--From amounts appropriated for the 
     Department of Defense for any fiscal year for procurement--
       ``(1) the total amount transferred under this section may 
     not exceed $250,000,000; and
       ``(2) the total amount so transferred for any acquisition 
     program may not exceed $20,000,000.
       ``(d) Covered Acquisition Programs.--In this section, the 
     term `covered acquisition program' means an acquisition 
     program of the Department of Defense that is--
       ``(A) a major defense acquisition program for purposes of 
     chapter 144 of this title; or
       ``(B) any other acquisition program of the Department of 
     Defense--
       ``(i) that is designated by the Secretary of Defense as a 
     covered acquisition program for purposes of this section; or
       ``(ii) that is estimated by the Secretary of Defense to 
     require an eventual total expenditure for research, 
     development, test, and evaluation of more than $140,000,000 
     (based on fiscal year 2000 constant dollars) or an eventual 
     total expenditure for procurement of more than $660,000,000 
     (based on fiscal year 2000 constant dollars.)
       ``(e) Transfer Back of Unused Transferred Funds.--If funds 
     transferred under this section are not used for the purposes 
     for which transferred, such funds shall be transferred back 
     to the account from which transferred and shall be available 
     for their original purpose.
       ``(f) Additional Authority.--The transfer authority 
     provided in this section is in addition to any other transfer 
     authority available to the Secretary of Defense.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2214 the following new item:

``2214a. Transfer of funds: transfers from procurement accounts to 
              research and development accounts for major acquisition 
              programs.''.

       (b) Effective Date.--Section 2214a of title 10, United 
     States Code, as added by subsection (a), shall not apply with 
     respect to funds appropriated before the date of the 
     enactment of this Act.

     SEC. 1007. DEVELOPMENT AND PROCUREMENT OF FINANCIAL AND 
                   NONFINANCIAL MANAGEMENT SYSTEMS.

       (a) Report.--Not later than March 1, 2003, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report on the modernization of the Department of Defense's 
     financial management systems and operations. The report shall 
     include the following:
       (1) The goals and objectives of the Financial Management 
     Modernization Program.
       (2) The acquisition strategy for that Program, including 
     milestones, performance metrics, and financial and 
     nonfinancial resource needs.
       (3) A listing of all operational and developmental 
     financial and nonfinancial management systems in use by the 
     Department, the related costs to operate and maintain those 
     systems during fiscal year 2002, and the estimated cost to 
     operate and maintain those systems during fiscal year 2003.
       (4) An estimate of the completion date of a transition plan 
     that will identify which of the Department's operational and 
     developmental financial management systems will not be part 
     of the objective financial and nonfinancial management system 
     and that provides the schedule for phase out of those legacy 
     systems.
       (b) Limitations.--(1) A contract described in subsection 
     (c) may be entered into using funds made available to the 
     Department of Defense for fiscal year 2003 only with the 
     approval in advance in writing of the Under Secretary of 
     Defense (Comptroller).
       (2) Not more than 75 percent of the funds authorized to be 
     appropriated in section 201(4) for research, development, 
     test, and evaluation for the Department of Defense Financial 
     Modernization Program (Program Element 65016D8Z) may be 
     obligated until the report required by subsection (a) is 
     received by the congressional defense committees.
       (c) Covered Contracts.--Subsection (b)(1) applies to a 
     contract for the procurement of any of the following:
       (1) An enterprise architecture system.
       (2) A finance or accounting system.
       (3) A nonfinancial business and feeder system.
       (4) An upgrade to any system specified in paragraphs (1) 
     through (3).
       (d) Definitions.--As used in this section:
       (1) Financial management system and operations.--The term 
     ``financial management system and operations'' means 
     financial, financial related, and non-financial business 
     operations and systems used for acquisition programs, 
     transportation, travel, property, inventory, supply, medical, 
     budget formulation, financial reporting, and accounting. Such 
     term includes the automated and manual processes, procedures, 
     controls, data, hardware, software, and support personnel 
     dedicated to the operations and maintenance of system 
     functions.
       (2) Feeder systems.--The term ``feeder systems'' means 
     financial portions of mixed systems.
       (3) Developmental systems and projects.--The term 
     ``developmental systems and projects'' means any system that 
     has not reached Milestone C, as defined in the Department of 
     Defense 5000-series regulations.

                          Subtitle B--Reports

     SEC. 1011. AFTER-ACTION REPORTS ON THE CONDUCT OF MILITARY 
                   OPERATIONS CONDUCTED AS PART OF OPERATION 
                   ENDURING FREEDOM.

       (a) Report Required.--(1) The Secretary of Defense shall 
     submit to the congressional committees specified in 
     subsection (c) two reports on the conduct of military 
     operations conducted as part of Operation Enduring Freedom. 
     The first report (which shall be an interim report) shall be 
     submitted not later than June 15, 2003. The second report 
     shall be submitted not later than 180 days after the date (as 
     determined by the Secretary of Defense) of the cessation of 
     hostilities undertaken as part of Operation Enduring Freedom.
       (2) Each report shall be prepared in consultation with the 
     Chairman of the Joint Chiefs of Staff, the commander-in-chief 
     of the United States Central Command, and the Director of 
     Central Intelligence.
       (3) Each report shall be submitted in both a classified 
     form and an unclassified form.
       (b) Matters To Be Included.--Each report shall contain a 
     discussion of accomplishments and shortcomings of the overall 
     military operation. The report shall specifically include the 
     following:
       (1) A discussion of the command, control, coordination, and 
     support relationship between United States Special Operations 
     Forces and Central Intelligence Agency elements participating 
     in Operation Enduring Freedom and any lessons learned from 
     the joint conduct of operations by those forces and elements.
       (2) Recommendations to improve operational readiness and 
     effectiveness.
       (c) Congressional Committees.--The committees referred to 
     in subsection (a)(1) are the following:
       (1) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       (2) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.

     SEC. 1012. REPORT ON BIOLOGICAL WEAPONS DEFENSE AND COUNTER-
                   PROLIFERATION.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report--
       (1) describing programs and initiatives to halt, counter, 
     and defend against the development, production, and 
     proliferation of biological weapons agents, technology, and 
     expertise to terrorist organizations and other States; and
       (2) including a detailed list of the limitations and 
     impediments to the biological weapons defense, 
     nonproliferation, and counterproliferation efforts of the 
     Department of Defense, and recommendations to remove such 
     impediments and to make such efforts more effective.
       (b) Classification.--The report may be submitted in 
     unclassified or classified form as necessary.

     SEC. 1013. REQUIREMENT THAT DEPARTMENT OF DEFENSE REPORTS TO 
                   CONGRESS BE ACCOMPANIED BY ELECTRONIC VERSION.

       Section 480(a) of title 10, United States Code, is amended 
     by striking ``shall, upon request'' and all that follows 
     through ``(or each'' and inserting ``shall provide to 
     Congress (or''.

     SEC. 1014. STRATEGIC FORCE STRUCTURE PLAN FOR NUCLEAR WEAPONS 
                   AND DELIVERY SYSTEMS.

       (a) Plan Required.--The Secretary of Defense and the 
     Secretary of Energy shall jointly prepare a plan for the 
     United States strategic force structure for nuclear weapons 
     and nuclear weapons delivery systems for the period of fiscal 
     years from 2002 through 2012. The plan shall--
       (1) delineate a baseline strategic force structure for such 
     weapons and systems over such period consistent with the 
     Nuclear Posture Review dated January 2002;

[[Page H5575]]

       (2) define sufficient force structure, force modernization 
     and life extension plans, infrastructure, and other elements 
     of the defense program of the United States associated with 
     such weapons and systems that would be required to execute 
     successfully the full range of missions called for in the 
     national defense strategy delineated in the Quadrennial 
     Defense Review dated September 30, 2001, under section 118 of 
     title 10, United States Code; and
       (3) identify the budget plan that would be required to 
     provide sufficient resources to execute successfully the full 
     range of missions using such force structure called for in 
     that national defense strategy.
       (b) Report.--(1) The Secretary of Defense and the Secretary 
     of Energy shall submit a report on the plan to the 
     congressional defense committees. Except as provided in 
     paragraph (2), the report shall be submitted not later than 
     January 1, 2003.
       (2) If before January 1, 2003, the President submits to 
     Congress the President's certification that it is in the 
     national security interest of the United States that such 
     report be submitted on a later date (to be specified by the 
     President in the certification), such report shall be 
     submitted not later than such later date.
       (c) Report on Options for Achieving, Prior to Fiscal Year 
     2012, President's Objective for Operationally Deployed 
     Nuclear Warheads.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of Energy shall 
     submit to Congress a report on options for achieving, prior 
     to fiscal year 2012, a posture under which the United States 
     maintains a number of operationally deployed nuclear warheads 
     at a level of from 1,700 to 2,200 such warheads, as outlined 
     in the Nuclear Posture Review. The report shall include the 
     following:
       (1) For each of fiscal years 2006, 2008, and 2010, an 
     assessment of the options for achieving such posture as of 
     such fiscal year.
       (2) An assessment of the effects of achieving such posture 
     prior to fiscal year 2012 on cost, the dismantlement 
     workforce, and any other affected matter.

     SEC. 1015. REPORT ON ESTABLISHMENT OF A JOINT NATIONAL 
                   TRAINING COMPLEX AND JOINT OPPOSING FORCES.

       (a) Report Required.--Not later than six months after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report that outlines a plan to develop and 
     implement a joint national training complex. Such a complex 
     may include multiple joint training sites and mobile training 
     ranges and appropriate joint opposing forces and shall be 
     capable of supporting field exercises and experimentation at 
     the operational level of war across a broad spectrum of 
     adversary capabilities.
       (b) Matters To Be Included.--The report under subsection 
     (a) shall include the following:
       (1) An identification and description of the types of joint 
     training and experimentation that would be conducted at such 
     a joint national training complex, together with a 
     description of how such training and experimentation would 
     enhance accomplishment of the six critical operational goals 
     for the Department of Defense specified at page 30 of the 
     Quadrennial Defense Review Report of the Secretary of Defense 
     issued on September 30, 2001.
       (2) A discussion of how establishment of such a complex 
     (including joint opposing forces) would promote innovation 
     and transformation throughout the Department of Defense.
       (3) A discussion of how results from training and 
     experiments conducted at such a complex would be taken into 
     consideration in the Department of Defense plans, programs, 
     and budgeting process and by appropriate decision making 
     bodies within the Department of Defense.
       (4) A methodology, framework, and options for selecting 
     sites for such a complex, including consideration of current 
     training facilities that would accommodate requirements among 
     all the Armed Forces.
       (5) Options for development as part of such a complex of a 
     joint urban warfare training center that could also be used 
     for homeland defense and consequence management training for 
     Federal, State, and local training.
       (6) Cost estimates and resource requirements to establish 
     and maintain such a complex, including estimates of costs and 
     resource requirements for the use of contract personnel for 
     the performance of management, operational, and logistics 
     activities for such a complex .
       (7) An explanation of the relationship between and among 
     such a complex and the Department of Defense Office of 
     Transformation, the Joint Staff, the United States Joint 
     Forces Command, the United States Northern Command, and each 
     element of the major commands within the separate Armed 
     Forces with responsibility for experimentation and training.
       (8) A discussion of how implementation of a joint opposing 
     force would be established, including the feasibility of 
     using qualified contractors for the function of establishing 
     and maintaining joint opposing forces and the role of foreign 
     forces.
       (9) Submission of a time line to establish such a center 
     and for such a center to achieve initial operational 
     capability and full operational capability.

     SEC. 1016. REPEAL OF VARIOUS REPORTS REQUIRED OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Provisions of Title 10.--Title 10, United States Code, 
     is amended as follows:
       (1)(A) Section 230 is repealed.
       (B) The table of sections at the beginning of chapter 9 is 
     amended by striking the item relating to section 230.
       (2) Section 526 is amended by striking subsection (c).
       (3) Section 721(d) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' before ``If an officer''.
       (4) Section 986 is amended by striking subsection (e).
       (5) Section 1095(g) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' after ``(g)''.
       (6) Section 1798 is amended by striking subsection (d).
       (7) Section 1799 is amended by striking subsection (d).
       (8) Section 2010 is amended by striking subsection (b).
       (9) Section 2327(c)(1) is amended--
       (A) in subparagraph (A), by striking ``after the date on 
     which such head of an agency submits to Congress a report on 
     the contract'' and inserting ``if in the best interests of 
     the Government''; and
       (B) by striking subparagraph (B).
       (10) Section 2350f is amended by striking subsection (c).
       (11) Section 2350k is amended by striking subsection (d).
       (12) Section 2492 is amended by striking subsection (c).
       (13) Section 2493 is amended by striking subsection (g).
       (14) Section 2563(c)(2) is amended by striking ``and 
     notifies Congress regarding the reasons for the waiver''.
       (15) Section 2611 is amended by striking subsection (e).
       (16) Sections 4357, 6975, and 9356 are each amended--
       (A) by striking subsection (c); and
       (B) in subsection (a), by striking ``Subject to subsection 
     (c), the Secretary'' and inserting ``The Secretary''.
       (17) Section 4416 is amended by striking subsection (f).
       (18) Section 5721(f) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' after the subsection heading.
       (19) Section 12302 is amended--
       (A) in subsection (b), by striking the last sentence; and
       (B) by striking subsection (d).
       (b) National Defense Authorization Act for Fiscal Year 
     1995.--Section 553(b) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2772; 
     10 U.S.C. 4331 note) is amended by striking the last 
     sentence.

     SEC. 1017. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE IN 
                   SUPPORTING HOMELAND SECURITY.

       (a) Report Required.--Not later than December 31, 2002, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on Department of Defense 
     responsibilities, mission, and plans for military support of 
     homeland security.
       (b) Content of Report.--The report shall include, but not 
     be limited to, a discussion of the following:
       (1) Changes in organization regarding the roles, mission, 
     and responsibilities carried out by the Department of Defense 
     to support its homeland security mission and the reasons for 
     those changes based upon the findings of the study and report 
     required by section 1511 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1271).
       (2) Changes in the roles, missions, and responsibilities of 
     the Department of the Army, the Department of the Navy, and 
     the Department of the Air Force with respect to homeland 
     security and the reasons for such changes.
       (3) Changes in the roles, missions, and responsibilities of 
     unified commands with homeland security missions and the 
     reasons for such changes.
       (4) Changes in the roles, missions, and responsibilities of 
     the United States Joint Forces Command and the United States 
     Northern Command in expanded homeland security training and 
     experimentation involving the Department of Defense and other 
     Federal, State, and local entities, and the reasons for such 
     changes.
       (5) Changes in the roles, missions, and responsibilities of 
     the Army National Guard and the Air National Guard in the 
     homeland security mission of the Department of Defense, and 
     the reasons for such changes.
       (6) The status of the unconventional nuclear warfare 
     defense test bed program established in response to title IX 
     of the Department of Defense Appropriations Act, 2002 
     (division A of Public Law 107-117; 115 Stat. 2289), including 
     the plan and program for establishing such test beds.
       (7) The plans and status of the Department of Defense 
     homeland security biological defense program, including the 
     plans and status of--
       (A) the biological counter terrorism research program;
       (B) the biological defense homeland security support 
     program;
       (C) pilot programs for establishing biological defense test 
     beds on Department of Defense installations and in selected 
     urban areas of the United States;
       (D) programs for expanding the capacity of the Department 
     of Defense to meet increased demand for vaccines against 
     biological agents; and

[[Page H5576]]

       (E) any plans to coordinate Department of Defense work in 
     biological defense programs with other Federal, State, and 
     local programs.
       (8) Recommendations for legislative changes that may be 
     required to execute the roles and missions set forth in 
     Department of Defense homeland security plans.

     SEC. 1018. REPORT ON EFFECTS OF NUCLEAR EARTH PENETRATOR 
                   WEAPONS AND OTHER WEAPONS.

       (a) NAS Study.--The Secretary of Defense shall request the 
     National Academy of Sciences to conduct a study and prepare a 
     report on the anticipated short-term and long-term effects of 
     the use of a nuclear earth penetrator weapon on the target 
     area, including the effects on civilian populations in 
     proximity to the target area and on United States military 
     personnel performing operations and battle damage assessments 
     in the target area, and the anticipated short-term and long-
     term effects on the civilian population in proximity to the 
     target area if--
       (1) a non-penetrating nuclear weapon is used to destroy 
     hard or deeply-buried targets; or
       (2) a conventional high-explosive weapon is used to destroy 
     an adversary's weapons of mass destruction storage or 
     production facilities, and radioactive, nuclear, biological, 
     or chemical weapons materials, agents, or other contaminants 
     are released or spread into populated areas.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     the report under subsection (a), together with any comments 
     the Secretary may consider appropriate on the report. The 
     report shall be submitted in unclassified form to the maximum 
     extent possible, with a classified annex if needed.

     SEC. 1019. REPORT ON EFFECTS OF NUCLEAR-TIPPED BALLISTIC 
                   MISSILE INTERCEPTORS AND NUCLEAR MISSILES NOT 
                   INTERCEPTED.

       (a) NAS Study.--The Secretary of Defense shall request the 
     National Academy of Sciences to conduct a study and prepare a 
     report on the anticipated short-term and long-term effects of 
     the use of a nuclear-tipped ballistic missile interceptor, 
     including the effects on civilian populations and on United 
     States military personnel in proximity to the target area, 
     and the immediate, short-term, and long-term effects on the 
     civilian population of a major city of the United States, and 
     the Nation as a whole, if a ballistic missile carrying a 
     nuclear weapon is not intercepted and detonates directly 
     above a major city of the United States.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     the report under subsection (a), together with any comments 
     the Secretary may consider appropriate on the report. The 
     report shall be submitted in unclassified form to the maximum 
     extent possible, with a classified annex if needed.

     SEC. 1020. LIMITATION ON DURATION OF FUTURE DEPARTMENT OF 
                   DEFENSE REPORTING REQUIREMENTS.

       (a) In General.--Chapter 23 of title 10, United States 
     Code, is amended by inserting after section 480 the following 
     new section:

     ``Sec. 480a. Recurring reporting requirements: five-year 
       limitation

       ``(a) Five-Year Sunset.--Any recurring congressional 
     defense reporting requirement that is established by a 
     provision of law enacted on or after the date of the 
     enactment of the Bob Stump National Defense Authorization Act 
     for Fiscal Year 2003 (including a provision of law enacted as 
     part of that Act) shall cease to be effective, with respect 
     to that requirement, at the end of the five-year period 
     beginning on the date on which such provision is enacted, 
     except as otherwise provided by law.
       ``(b) Rule of Construction.--A provision of law enacted 
     after the date of the enactment of this section may not be 
     considered to supersede the provisions of subsection (a) 
     unless that provision specifically refers to subsection (a) 
     and specifically states that it supersedes subsection (a).
       ``(c) Recurring Congressional Defense Reporting 
     Requirements.--In this section, the term `recurring defense 
     congressional reporting requirement' means a requirement by 
     law for the submission of an annual, semiannual, or other 
     regular periodic report to Congress, or one or more 
     committees of Congress, that applies only to the Department 
     of Defense or to one or more officers of the Department of 
     Defense.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 480 the following new item:

``480a. Recurring reporting requirements: five-year limitation.''.

                       Subtitle C--Other Matters

     SEC. 1021. SENSE OF CONGRESS ON MAINTENANCE OF A RELIABLE, 
                   FLEXIBLE, AND ROBUST STRATEGIC DETERRENT.

       It is the sense of Congress that, consistent with the 
     national defense strategy delineated in the Quadrennial 
     Defense Review dated September 30, 2001 (as submitted under 
     section 118 of title 10, United States Code), the Nuclear 
     Posture Review dated January 2002, and the global strategic 
     environment, the President should, to defend the Nation, 
     deter aggressors and potential adversaries, assure friends 
     and allies, defeat enemies, dissuade competitors, advance the 
     foreign policy goals and vital interests of the United 
     States, and generally ensure the national security of the 
     United States, take the following actions:
       (1) Maintain an operationally deployed strategic force of 
     not less than 1,700 nuclear weapons for immediate and 
     unexpected contingencies.
       (2) Maintain a responsive force of non-deployed nuclear 
     weapons for potential contingencies at readiness and 
     numerical levels determined to be--
       (A) essential to the execution of the Single Integrated 
     Operational Plan; or
       (B) necessary to maintain strategic flexibility and 
     capability in accordance with the findings and conclusions of 
     such Nuclear Posture Review.
       (3) Develop advanced conventional weapons, and nuclear 
     weapons, capable of destroying--
       (A) hard and deeply buried targets; and
       (B) enemy weapons of mass destruction and the development 
     and production facilities of such enemy weapons.
       (4) Develop a plan to achieve and maintain the capability 
     to resume conducting underground tests of nuclear weapons 
     within one year after a decision is made to resume conducting 
     such tests, so as to have the means to maintain robust and 
     adaptive strategic forces through a ready, responsive, and 
     capable nuclear infrastructure, as prescribed in such Nuclear 
     Posture Review.
       (5) Develop a plan to revitalize the Nation's nuclear 
     weapons industry and infrastructure so as to facilitate the 
     development and production of safer, more reliable, and more 
     effective nuclear weapons.

     SEC. 1022. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE 
                   AUTHORIZATION LEGISLATIVE PROPOSAL.

       (a) In General.--Chapter 2 of title 10, United States Code, 
     is amended by inserting after section 113 the following new 
     section:

     ``Sec. 113a. Transmission of annual defense authorization 
       request

       ``(a) Time for Transmittal.--The Secretary of Defense shall 
     transmit to Congress the annual defense authorization request 
     for a fiscal year during the first 30 days after the date on 
     which the President transmits to Congress the budget for that 
     fiscal year pursuant to section 1105 of title 31.
       ``(b) Defense Authorization Request Defined.--In this 
     section, the term `defense authorization request', with 
     respect to a fiscal year, means a legislative proposal 
     submitted to Congress for the enactment of the following:
       ``(1) Authorizations of appropriations for that fiscal 
     year, as required by section 114 of this title.
       ``(2) Personnel strengths for that fiscal year, as required 
     by section 115 of this title.
       ``(3) Any other matter that is proposed by the Secretary of 
     Defense to be enacted as part of the annual defense 
     authorization bill for that fiscal year.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 113 the following new item:

``113a. Transmission of annual defense authorization request.''.

     SEC. 1023. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Section 153 is amended by inserting ``(a) Planning; 
     Advice; Policy Formulation.--'' at the beginning of the text.
       (2) Section 663(e)(2) is amended by striking ``Armed Forces 
     Staff College'' and inserting ``Joint Forces Staff College''.
       (3) Section 2399(a)(2) is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     ``means--'' and inserting ``means a conventional weapons 
     system 
     that--''; and
       (B) in subparagraph (A), by striking ``a conventional 
     weapons system that''.
       (4)(A) Section 2410h is transferred to the end of 
     subchapter IV of chapter 87 and is redesignated as section 
     1747.
       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 141 is transferred to 
     the end of the table of sections at the beginning of 
     subchapter IV of chapter 87 and is amended to reflect the 
     redesignation made by subparagraph (A).
       (5) Section 2677 is amended by striking subsection (c).
       (6) Section 2680(e) is amended by striking ``the'' after 
     ``the Committee on'' the first place it appears.
       (7) Section 2815(b) is amended by striking ``for fiscal 
     year 2003 and each fiscal year thereafter'' and inserting 
     ``for any fiscal year''.
       (8) Section 2828(b)(2) is amended by inserting ``time'' 
     after ``from time to''.
       (b) Title 37, United States Code.--Title 37, United States 
     Code, is amended as follows:
       (1) Section 302j(a) is amended by striking ``subsection 
     (c)'' and inserting ``subsection (d)''.
       (2) Section 324(b) is amended by striking ``(1)'' before 
     ``The Secretary''.
       (c) Public Law 107-107.--Effective as of December 28, 2001, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107) 
     is amended as follows:
       (1) Section 602(a)(2) (115 Stat. 1132) is amended by 
     striking ``an'' in the first quoted matter.
       (2) Section 1410(a)(3)(C) (115 Stat. 1266) by inserting 
     ``both places it appears'' before ``and inserting''.

[[Page H5577]]

       (3) Section 3007(d)(1)(C) (115 Stat. 1352) is amended by 
     striking ``2905(b)(7)(B)(iv)'' and inserting 
     ``2905(b)(7)(C)(iv)''.
       (d) Public Law 106-398.--Effective as of October 30, 2000, 
     and as if included therein as enacted, the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398) is amended as 
     follows:
       (1) Section 577(b)(2) (114 Stat. 1654A-140) is amended by 
     striking ``Federal'' in the quoted matter and inserting 
     ``Department of Defense''.
       (2) Section 612(c)(4)(B) (114 Stat. 1654A-150) is amended 
     by striking the comma at the end of the first quoted matter.
       (e) Public Law 106-65.--The National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65) is amended as 
     follows:
       (1) Section 573(b) (10 U.S.C. 513 note) is amended by 
     inserting a period at the end of paragraph (2).
       (2) Section 1305(6) (22 U.S.C. 5952 note) is amended by 
     striking the first period after ``facility''.
       (f) Title 14, United States Code.--Section 516(c) of title 
     14, United States Code, is amended by striking ``his 
     section'' and inserting ``this section''.

     SEC. 1024. WAR RISK INSURANCE FOR VESSELS IN SUPPORT OF NATO-
                   APPROVED OPERATIONS.

       Section 1205 of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1285) is amended by adding at the end the following:
       ``(c) Insurance of Vessels in Support of NATO-Approved 
     Operations.--(1) Upon request made under subsection (b), the 
     Secretary may provide insurance for a vessel, regardless of 
     the country in which the vessel is registered and the 
     citizenship of its owners, that is supporting a military 
     operation approved by the North Atlantic Council, including a 
     vessel that is not operating under contract with a department 
     or agency of the United States.
       ``(2) If a vessel is insured under paragraph (1) in 
     response to a request made pursuant to an international 
     agreement providing for the sharing among nations of the 
     risks involved in mutual or joint operations, the Secretary 
     of Transportation, with the concurrence of the Secretary of 
     State, may seek from another nation that is a party to such 
     agreement a commitment to indemnify the United States for any 
     amounts paid by the United States for claims against such 
     insurance.
       ``(3) Amounts received by the United States as indemnity 
     from a nation pursuant to paragraph (2) shall be deposited 
     into the insurance fund created under section 1208.
       ``(4) Any obligation of a department or agency of the 
     United States to indemnify the Secretary or the insurance 
     fund for any claim against insurance provided under this 
     subsection is extinguished to the extent of any 
     indemnification received from a nation pursuant to paragraph 
     (2) with respect to the claim.''.

     SEC. 1025. CONVEYANCE, NAVY DRYDOCK, PORTLAND, OREGON.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     sell Navy Drydock No. YFD-69, located in Portland, Oregon, to 
     Portland Shipyard, LLC, which is the current user of the 
     drydock.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     purchaser agree to retain the drydock on Swan Island in 
     Portland, Oregon, until at least September 30, 2007.
       (c) Consideration.--As consideration for the conveyance of 
     the drydock under subsection (a), the purchaser shall pay to 
     the Secretary an amount equal to the fair market value of the 
     drydock at the time of the conveyance, as determined by the 
     Secretary.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 1026. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL 
                   SUPPORT TEAMS.

       (a) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should--
       (1) establish 23 additional teams designated as Weapons of 
     Mass Destruction Civil Support Teams (for a total of 55 such 
     teams); and
       (2) ensure that of such 55 teams there is at least one team 
     established for each State and territory.
       (b) State and Territory Defined.--In this section, the term 
     ``State and territory'' means the several States, the 
     District of Columbia, Puerto Rico, Guam, and the Virgin 
     Islands.

     SEC. 1027. USE FOR LAW ENFORCEMENT PURPOSES OF DNA SAMPLES 
                   MAINTAINED BY DEPARTMENT OF DEFENSE FOR 
                   IDENTIFICATION OF HUMAN REMAINS.

       (a) In General.--Chapter 80 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1566. DNA samples maintained for identification of 
       human remains: use for law enforcement purposes

       ``(a) Compliance with Court Order.--(1) Subject to 
     paragraph (2), if a valid order of a Federal court (or 
     military judge) so requires, an element of the Department of 
     Defense that maintains a repository of DNA samples for the 
     purpose of identification of human remains shall make 
     available, for the purpose specified in subsection (b), such 
     DNA samples on such terms and conditions as such court (or 
     military judge) directs.
       ``(2) A DNA sample with respect to an individual shall be 
     provided under paragraph (1) in a manner that does not 
     compromise the ability of the Department of Defense to 
     maintain a sample with respect to that individual for the 
     purpose of identification of human remains.
       ``(b) Covered Purpose.--The purpose referred to in 
     subsection (a) is the purpose of an investigation or 
     prosecution of a felony, or any sexual offense, for which no 
     other source of DNA information is available.
       ``(c) Definition.--In this section, the term `DNA sample' 
     has the meaning given such term in section 1565(c) of this 
     title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``1566. DNA samples maintained for identification of human remains: use 
              for law enforcement purposes.''.

     SEC. 1028. SENSE OF CONGRESS CONCERNING AIRCRAFT CARRIER 
                   FORCE STRUCTURE.

       (a) Findings.--Congress makes the following findings:
       (1) The aircraft carrier has been an integral component in 
     Operation Enduring Freedom and in the homeland defense 
     mission beginning on September 11, 2001. The aircraft 
     carriers that have participated in Operation Enduring 
     Freedom, as of May 1, 2002, are the USS Enterprise (CVN-65), 
     the USS Carl Vinson (CVN-70), the USS Kitty Hawk (CV-63), the 
     USS Theodore Roosevelt (CVN-71), the USS John C. Stennis 
     (CVN-74), and the USS John F. Kennedy (CV-67). The aircraft 
     carriers that have participated in the homeland defense 
     mission are the USS George Washington (CVN-73), the USS John 
     F. Kennedy (CV-67), and the USS John C. Stennis (CVN-74).
       (2) Since 1945, the United States has built 172 bases 
     overseas, of which only 24 are currently in use.
       (3) The aircraft carrier provides an independent base of 
     operations should no land base be available for aircraft.
       (4) The aircraft carrier is an essential component of the 
     Navy.
       (5) Both the F/A-18E/F aircraft program and the Joint 
     Strike Fighter aircraft program are proceeding on schedule 
     for deployment on aircraft carriers.
       (6) As established by the Navy, the United States requires 
     the service of 15 aircraft carriers to completely fulfill all 
     the naval commitments assigned to it without gapping carrier 
     presence.
       (7) The Navy requires, at a minimum, at least 12 carriers 
     to accomplish its current missions.
       (b) Sense of Congress.--It is the sense of Congress that 
     the number of aircraft carriers of the Navy in active service 
     should not be less than 12.
       (c) Commendation of Crews.--Congress hereby commends the 
     crews of the aircraft carriers that have participated in 
     Operation Enduring Freedom and the homeland defense mission.

     SEC. 1029. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE 
                   SERVICES DURING PERIODS OF EMERGENCY.

       (a) National Foreign Language Skills Registry.--(1) The 
     Secretary of Defense may establish and maintain a secure data 
     registry to be known as the ``National Foreign Language 
     Skills Registry''. The data registry shall consist of the 
     names of, and other pertinent information on, linguistically 
     qualified United States citizens and permanent resident 
     aliens who state that they are willing to provide linguistic 
     services in times of emergency designated by the Secretary of 
     Defense to assist the Department of Defense and other 
     Departments and agencies of the United States with 
     translation and interpretation in languages designated by the 
     Secretary of Defense as critical languages.
       (2) The name of a person may be included in the Registry 
     only if the person expressly agrees for the person's name to 
     be included in the Registry. Any such agreement shall be made 
     in such form and manner as may be specified by the Secretary.
       (b) Authority To Accept Voluntary Translation and 
     Interpretation Services.--Section 1588(a) of title 10, United 
     States Code, is amended by adding at the end the following 
     new paragraph:
       ``(6) Language translation and interpretation services.''.

     SEC. 1030. SURFACE COMBATANT INDUSTRIAL BASE.

       (a) Review.--The Secretary of Defense shall conduct a 
     review of the effect of the contract award announced on April 
     29, 2002, for the lead design agent for the DD(X) ship 
     program on the industrial base for ship combat system 
     development, including the industrial base for each of the 
     following: ship systems integration, radar, electronic 
     warfare, launch systems, and other components.
       (b) Report Required.--Not later than March 31, 2003, the 
     Secretary shall submit to the congressional defense 
     committees a report based on the review under subsection (a). 
     The report shall provide the Secretary's assessment of the 
     effect of that contract award on the ship combat system 
     technology and industrial base and shall describe any actions 
     that the Secretary proposes to ensure future competition 
     across the array of technologies that encompass the combat 
     systems of future surface ships, including the next 
     generation cruiser (CG(X)), the littoral combat ship (LCS), 
     and the joint command ship (JCC(X)).

[[Page H5578]]

     SEC. 1031. ENHANCED COOPERATION BETWEEN UNITED STATES AND 
                   RUSSIAN FEDERATION TO PROMOTE MUTUAL SECURITY.

       (a) Statement of Policy.--It is the policy of the United 
     States to pursue greater cooperation, transparency, and 
     confidence with the Russian Federation regarding nuclear 
     weapons policy, force structure, safeguards, testing, and 
     proliferation prevention, as well as nuclear weapons 
     infrastructure, production, and dismantlement, so as to 
     promote mutual security, stability, and trust.
       (b) Sense of Congress Regarding Enhanced Cooperation With 
     Russia.--It is the sense of Congress that the President of 
     the United States should continue to engage the President of 
     the Russian Federation to achieve the following objectives, 
     consistent with United States national security, in the 
     interest of promoting mutual trust, security, and stability:
       (1) An agreement that would seek to prevent the illicit 
     use, diversion, theft, or proliferation of tactical nuclear 
     weapons, and their key components and materials, by--
       (A) withdrawing deployed nonstrategic nuclear weapons;
       (B) accounting for, consolidating, and securing the Russian 
     Federation's nonstrategic nuclear weapons; and
       (C) dismantling or destroying United States and Russian 
     nonstrategic nuclear weapons in excess of each nation's 
     legitimate defense needs.
       (2) A reciprocal program of joint visits by nuclear weapons 
     scientists and experts of the United States and the Russian 
     Federation to the United States nuclear test site in Nevada, 
     and the Russian nuclear test site at Novya Zemlya.
       (3) A reciprocal program of joint visits and conferences at 
     each nation's nuclear weapons laboratories and nuclear 
     weapons development and production facilities to discuss how 
     to improve the safety and security of each nation's nuclear 
     stockpile, nuclear materials, and nuclear infrastructure.
       (4) A reciprocal program of joint visits and conferences to 
     explore greater cooperation between the United States and the 
     Russian Federation with regard to ballistic missile defenses 
     against intentional, unauthorized, and accidental launches of 
     ballistic missiles.
       (5) A joint commission on nonproliferation, composed of 
     senior nonproliferation and intelligence officials from the 
     United States and the Russian Federation, to meet regularly 
     in a closed forum to discuss ways to prevent rogue states and 
     potential adversaries from acquiring--
       (A) weapons of mass destruction and ballistic missiles;
       (B) the dual-use goods, technologies, and expertise 
     necessary to develop weapons of mass destruction and 
     ballistic missiles; and
       (C) advanced conventional weapons.
       (6) A joint program to develop advanced methods for 
     disposal of weapons-grade nuclear materials excess to defense 
     needs, including safe, proliferation resistant, advanced 
     nuclear fuel cycles that achieve more complete consumption of 
     weapons materials, and other methods that minimize waste and 
     hazards to health and the environment.
       (7) A joint program to develop methods for safeguarding, 
     treating, and disposing of spent reactor fuel and other 
     nuclear waste so as to minimize the risk to public health, 
     property, and the environment, as well as the possibility of 
     diversion to illicit purposes.
       (8) A joint program, built upon existing programs, to 
     cooperatively develop advanced methods and techniques for 
     establishing a state-of-the-art inventory control and 
     monitoring system for nuclear weapons and material.
       (c) Report.--No later than March 1, 2003, the President 
     shall submit to Congress a report (in unclassified or 
     classified form as necessary) on the status of the objectives 
     under subsection (b). The report shall include the following:
       (1) A description of the actions taken by the President to 
     engage the Russian Federation to achieve those objectives.
       (2) A description of the progress made to achieve those 
     objectives.
       (3) A description of the response of the Russian Federation 
     to the actions referred to in paragraph (1).
       (4) The President's assessment of the Russian Federation's 
     commitment to a better, closer relationship with the United 
     States based on the principles of increased cooperation and 
     transparency.

     SEC. 1032. TRANSFER OF FUNDS TO INCREASE AMOUNTS FOR PAC-3 
                   MISSILE PROCUREMENT AND ISRAELI ARROW PROGRAM.

       (a) Increase for PAC-3 Procurement.--The amount provided in 
     section 101 for Missile Procurement, Army, is hereby 
     increased by $65,000,000, to be available for an additional 
     24 PAC-3 missiles.
       (b) Increase for Israeli Arrow Program.--The amount 
     provided in section 201(4) for the Missile Defense Agency is 
     hereby increased by $70,000,000, to be available within 
     program element 0603881C, Terminal Defense Segment, only for 
     the Israeli Arrow Ballistic Missile Defense System program.
       (c) Corresponding Reduction.--The amount provided in 
     section 201(4) for research, development, test, and 
     evaluation, Defense-wide, is hereby reduced by $135,000,000, 
     to be derived from amounts available to the Missile Defense 
     Agency.

     SEC. 1033. ASSIGNMENT OF MEMBERS TO ASSIST IMMIGRATION AND 
                   NATURALIZATION SERVICE AND CUSTOMS SERVICE.

       (a) Assignment Authority of Secretary of Defense.--Chapter 
     18 of title 10, United States Code, is amended by inserting 
     after section 374 the following new section:

     ``Sec. 374a. Assignment of members to assist border patrol 
       and control

       ``(a) Assignment Authorized.--Upon submission of a request 
     consistent with subsection (b), the Secretary of Defense may 
     assign members of the Army, Navy, Air Force, and Marine Corps 
     to assist--
       ``(1) the Immigration and Naturalization Service in 
     preventing the entry of terrorists, drug traffickers, and 
     illegal aliens into the United States; and
       ``(2) the United States Customs Service in the inspection 
     of cargo, vehicles, and aircraft at points of entry into the 
     United States to prevent the entry of weapons of mass 
     destruction, components of weapons of mass destruction, 
     prohibited narcotics or drugs, or other terrorist or drug 
     trafficking items.
       ``(b) Request for Assignment.--The assignment of members 
     under subsection (a) may occur only if--
       ``(1) the assignment is at the request of the Attorney 
     General, in the case of an assignment to the Immigration and 
     Naturalization Service, or the Secretary of the Treasury, in 
     the case of an assignment to the United States Customs 
     Service; and
       ``(2) the request of the Attorney General or the Secretary 
     of the Treasury (as the case may be) is accompanied by a 
     certification by the President that the assignment of members 
     pursuant to the request is necessary to respond to a threat 
     to national security posed by the entry into the United 
     States of terrorists or drug traffickers.
       ``(c) Training Program Required.--The Attorney General or 
     the Secretary of the Treasury (as the case may be), together 
     with the Secretary of Defense, shall establish a training 
     program to ensure that members receive general instruction 
     regarding issues affecting law enforcement in the border 
     areas in which the members may perform duties under an 
     assignment under subsection (a). A member may not be deployed 
     at a border location pursuant to an assignment under 
     subsection (a) until the member has successfully completed 
     the training program.
       ``(d) Conditions of Use.--(1) Whenever a member who is 
     assigned under subsection (a) to assist the Immigration and 
     Naturalization Service or the United States Customs Service 
     is performing duties at a border location pursuant to the 
     assignment, a civilian law enforcement officer from the 
     agency concerned shall accompany the member.
       ``(2) Nothing in this section shall be construed to--
       ``(A) authorize a member assigned under subsection (a) to 
     conduct a search, seizure, or other similar law enforcement 
     activity or to make an arrest; and
       ``(B) supersede section 1385 of title 18 (popularly known 
     as the `Posse Comitatus Act').
       ``(e) Establishment of Ongoing Joint Task Forces.--(1) The 
     Attorney General or the Secretary of the Treasury may 
     establish ongoing joint task forces when accompanied by a 
     certification by the President that the assignment of members 
     pursuant to the request to establish a joint task force is 
     necessary to respond to a threat to national security posed 
     by the entry into the United States of terrorists or drug 
     traffickers.
       ``(2) When established, any joint task force shall fully 
     comply with the standards as set forth in this section.
       ``(f) Notification Requirements.--The Attorney General or 
     the Secretary of the Treasury (as the case may be) shall 
     notify the Governor of the State in which members are to be 
     deployed pursuant to an assignment under subsection (a), and 
     local governments in the deployment area, of the deployment 
     of the members to assist the Immigration and Naturalization 
     Service or the United States Customs Service (as the case may 
     be) and the types of tasks to be performed by the members.
       ``(g) Reimbursement Requirement.--Section 377 of this title 
     shall apply in the case of members assigned under subsection 
     (a).
       ``(h) Termination of Authority.--No assignment may be made 
     or continued under subsection (a) after September 30, 
     2005.''.
       (b) Commencement of Training Program.--The training program 
     required by subsection (b) of section 374a of title 10, 
     United States Code, shall be established as soon as 
     practicable after the date of the enactment of this Act.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 374 the following new item:

``374a. Assignment of members to assist border patrol and control.''.

     SEC. 1034. SENSE OF CONGRESS ON PROHIBITION OF USE OF FUNDS 
                   FOR INTERNATIONAL CRIMINAL COURT.

       It is the sense of Congress that none of the funds 
     appropriated pursuant to authorizations of appropriations in 
     this Act should be used for any assistance to, or to 
     cooperate with or to provide any support for, the 
     International Criminal Court.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

     SEC. 1101. ELIGIBILITY OF DEPARTMENT OF DEFENSE 
                   NONAPPROPRIATED FUND EMPLOYEES FOR LONG-TERM 
                   CARE INSURANCE.

       (a) In General.--Section 9001(1) of title 5, United States 
     Code, is amended--
       (1) in subparagraph (B), by striking ``and'';

[[Page H5579]]

       (2) in subparagraph (C), by striking the comma at the end 
     and inserting ``; and''; and
       (3) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) an employee of a nonappropriated fund instrumentality 
     of the Department of Defense described in section 2105(c),''.
       (b) Discretionary Authority.--Section 9002 of such title is 
     amended--
       (1) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (c), (d), (e), and (f), respectively; and
       (2) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Discretionary Authority Regarding Nonappropriated 
     Fund Instrumentalities.--The Secretary of Defense may 
     determine that a nonappropriated fund instrumentality of the 
     Department of Defense is covered under this chapter or is 
     covered under an alternative long-term care insurance 
     program.''.

     SEC. 1102. EXTENSION OF DEPARTMENT OF DEFENSE AUTHORITY TO 
                   MAKE LUMP-SUM SEVERANCE PAYMENTS.

       (a) In General.--Section 5595(i)(4) of title 5, United 
     States Code, is amended by striking ``2003'' and inserting 
     ``2006''.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the President shall submit to Congress 
     a report including recommendations whether the authority 
     under section 5595(i) of title 5, United States Code, should 
     be made permanent or expanded to be made Governmentwide.

     SEC. 1103. COMMON OCCUPATIONAL AND HEALTH STANDARDS FOR 
                   DIFFERENTIAL PAYMENTS AS A CONSEQUENCE OF 
                   EXPOSURE TO ASBESTOS.

       (a) Prevailing Rate Systems.--Section 5343(c)(4) of title 
     5, United States Code, is amended by inserting before the 
     semicolon at the end the following: ``, and for any hardship 
     or hazard related to asbestos, such differentials shall be 
     determined by applying occupational safety and health 
     standards consistent with the permissible exposure limit 
     promulgated by the Secretary of Labor under the Occupational 
     Safety and Health Act of 1970''.
       (b) General Schedule Pay Rates.--Section 5545(d) of such 
     title is amended by inserting before the period at the end of 
     the first sentence the following: ``, and for any hardship or 
     hazard related to asbestos, such differentials shall be 
     determined by applying occupational safety and health 
     standards consistent with the permissible exposure limit 
     promulgated by the Secretary of Labor under the Occupational 
     Safety and Health Act of 1970''.
       (c) Applicability.--Subject to any vested constitutional 
     property rights, any administrative or judicial determination 
     after the date of enactment of this Act concerning backpay 
     for a differential established under sections 5343(c)(4) or 
     5545(d) of such title shall be based on occupational safety 
     and health standards described in the amendments made by 
     subsections (a) and (b).

     SEC. 1104. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS 
                   PROGRAM ELIGIBILITY.

       Paragraph (4)(B) of section 8905a(d) of title 5, United 
     States Code, is amended--
       (1) in clause (i), by striking ``2003'' and inserting 
     ``2006''; and
       (2) in clause (ii)--
       (A) by striking ``2004'' and inserting ``2007''; and
       (B) by striking ``2003'' and inserting ``2006''.

     SEC. 1105. TRIENNIAL FULL-SCALE FEDERAL WAGE SYSTEM WAGE 
                   SURVEYS.

       Section 5343(b) of title 5, United States Code, is 
     amended--
       (1) in the first sentence, by striking ``2 years'' and 
     inserting ``3 years''; and
       (2) in the second sentence, by striking the period at the 
     end and inserting ``, based on criteria developed by the 
     Office.''.

     SEC. 1106. CERTIFICATION FOR DEPARTMENT OF DEFENSE 
                   PROFESSIONAL ACCOUNTING POSITIONS.

       (a) In General.--(1) Chapter 81 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1599d. Professional accounting positions: authority to 
       prescribe certification and credential standards

       ``(a) Authority To Prescribe Professional Certification 
     Standards.--The Secretary of Defense may prescribe 
     professional certification and credential standards for 
     professional accounting positions within the Department of 
     Defense. Any such standard shall be prescribed as a 
     Department of Defense regulation.
       ``(b) Waiver Authority.--The Secretary may waive any 
     standard prescribed under subsection (a) whenever the 
     Secretary determines such a waiver to be appropriate.
       ``(c) Applicability.--A standard prescribed under 
     subsection (a) shall not apply to any person employed by the 
     Department of Defense before the standard is prescribed.
       ``(d) Report.--The Secretary of Defense shall submit to 
     Congress a report on the Secretary's plans to provide 
     training to appropriate Department of Defense personnel to 
     meet any new professional and credential standards prescribed 
     under subsection (a). Such report shall be prepared in 
     conjunction with the Director of the Office of Personnel 
     Management. Such a report shall be submitted not later than 
     one year after the effective date of any regulations, or any 
     revision to regulations, prescribed pursuant to subsection 
     (a).
       ``(e) Definition.--In this section, the term `professional 
     accounting position' means a position or group of positions 
     in the GS-510, GS-511, and GS-505 series that involves 
     professional accounting work.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1599d. Professional accounting positions: authority to establish 
              certification and credential standards.''.
       (b) Effective Date.--Standards established pursuant to 
     section 1599d of title 10, United States Code, as added by 
     subsection (a), may take effect no sooner than 120 days after 
     the date of the enactment of this Act.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

     SEC. 1201. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO 
                   INSPECT AND MONITOR IRAQI WEAPONS ACTIVITIES.

       (a) Limitation on Amount of Assistance in Fiscal Year 
     2003.--The total amount of the assistance for fiscal year 
     2003 that is provided by the Secretary of Defense under 
     section 1505 of the Weapons of Mass Destruction Control Act 
     of 1992 (22 U.S.C. 5859a) as activities of the Department of 
     Defense in support of activities under that Act may not 
     exceed $15,000,000.
       (b) Extension of Authority To Provide Assistance.--
     Subsection (f) of section 1505 of the Weapons of Mass 
     Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended 
     by striking ``2002'' and inserting ``2003''.

     SEC. 1202. STRENGTHENING THE DEFENSE OF TAIWAN.

       (a) Implementation of Training Plan.--Not later than 180 
     days after the date of enactment of this Act, the Secretary 
     of Defense shall implement a comprehensive plan to conduct 
     joint operational training for, and exchanges of senior 
     officers between, the Armed Forces of the United States and 
     the military forces of Taiwan. Such plan shall include 
     implementation of a wide range of programs, activities, 
     exercises, and arrangements focused on threat analysis, 
     military doctrine, force planning, logistical support, 
     intelligence collection and analysis, operational tactics, 
     techniques, and procedures, civil-military relations, and 
     other subjects designed to improve the defensive capabilities 
     of Taiwan and to enhance interoperability between the 
     military forces of Taiwan and the Armed Forces of the United 
     States.
       (b) Submission to Congress.--At least 30 days before 
     commencing implementation of the plan described in subsection 
     (a), the Secretary of Defense shall submit the plan to 
     Congress, in classified and unclassified form as necessary.

     SEC. 1203. ADMINISTRATIVE SERVICES AND SUPPORT FOR FOREIGN 
                   LIAISON OFFICERS.

       (a) Authority.--Subchapter II of chapter 138 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2350m. Administrative services and support for foreign 
       liaison officers

       ``(a) Authority To Provide Services and Support.--The 
     Secretary of Defense may provide administrative services and 
     support for foreign liaison officers performing duties while 
     such officers temporarily are assigned to components or 
     commands of the armed forces. Such administrative services 
     and support may include base or installation operation 
     support services, office space, utilities, copying services, 
     fire and police protection, and computer support. The 
     Secretary may provide such administrative services and 
     support with or without reimbursement, as the Secretary 
     considers appropriate.
       ``(b) Expiration of Authority.--The authority under this 
     section shall expire on September 30, 2005.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:

``2350m. Administrative services and support for foreign liaison 
              officers.''.
       (c) Report.--Not later than March 1, 2005, the Secretary of 
     Defense shall provide to the Committees on Armed Services of 
     the Senate and the House of Representatives a report 
     describing, as of the date of submission of the report--
       (1) the number of foreign liaison officers for which 
     support has been provided under section 2350m of title 10, 
     United States Code (as added by subsection (a));
       (2) the countries from which such foreign liaison officers 
     are or were assigned;
       (3) the type of support provided, the duration for which 
     the support was provided, and the reasons the support was 
     provided; and
       (4) the costs to the Department of Defense and the United 
     States of providing such support.

     SEC. 1204. ADDITIONAL COUNTRIES COVERED BY LOAN GUARANTEE 
                   PROGRAM.

       Section 2540 of title 10, United States Code, is amended--
       (1) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(5) A country that, as determined by the Secretary of 
     Defense in consultation with the Secretary of State, assists 
     in combatting drug trafficking organizations or foreign 
     terrorist organizations.''; and
       (2) by adding at the end the following new subsection:
       ``(d) Report.--The Secretary of Defense and the Secretary 
     of State, whenever the Secretaries consider such action to be 
     warranted, shall jointly submit to the Committees on Armed 
     Services and Foreign Relations of the Senate and the 
     Committees on

[[Page H5580]]

     Armed Services and International Relations of the House of 
     Representatives a report enumerating those countries to be 
     added or removed under subsection (b).''.

     SEC. 1205. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE 
                   CENTER IN MOSCOW.

       (a) Limitation.--Not more than 50 percent of the funds made 
     available to the Department of Defense for fiscal year 2003 
     for activities associated with the Joint Data Exchange Center 
     in Moscow, Russia, may be obligated or expended for any such 
     activity until--
       (1) the United States and the Russian Federation enter into 
     a cost-sharing agreement as described in subsection (d) of 
     section 1231 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-329);
       (2) the United States and the Russian Federation enter into 
     an agreement or agreements exempting the United States and 
     any United States person from Russian taxes, and from 
     liability under Russian laws, with respect to activities 
     associated with the Joint Data Exchange Center;
       (3) the Secretary of Defense submits to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a copy of each 
     agreement referred to in paragraphs (1) and (2); and
       (4) a period of 30 days has expired after the date of the 
     final submission under paragraph (3).
       (b) Joint Data Exchange Center.--For purposes of this 
     section, the term ``Joint Data Exchange Center'' means the 
     United States-Russian Federation joint center for the 
     exchange of data to provide early warning of launches of 
     ballistic missiles and for notification of such launches that 
     is provided for in a joint United States-Russian Federation 
     memorandum of agreement signed in Moscow in June 2000.

     SEC. 1206. LIMITATION ON NUMBER OF MILITARY PERSONNEL IN 
                   COLOMBIA.

       (a) Limitation.--None of the funds available to the 
     Department of Defense may be used to support or maintain more 
     than 500 members of the Armed Forces on duty in the Republic 
     of Colombia at any time.
       (b) Exceptions.--There shall be excluded from counting for 
     the purposes of the limitation in subsection (a) the 
     following:
       (1) A member of the Armed Forces in the Republic of 
     Colombia for the purpose of rescuing or retrieving United 
     States military or civilian Government personnel, except that 
     the period for which such a member may be so excluded may not 
     exceed 30 days unless expressly authorized by law.
       (2) A member of the Armed Forces assigned to the United 
     States Embassy in Colombia as an attache, as a member of the 
     security assistance office, or as a member of the Marine 
     Corps security contingent.
       (3) A member of the Armed Forces in Colombia to participate 
     in relief efforts in responding to a natural disaster.
       (4) Nonoperational transient military personnel.
       (5) A member of the Armed Forces making a port call from a 
     military vessel in Colombia.
       (c) Waiver.--The Secretary of Defense may waive the 
     limitation in subsection (a) if he determines that such 
     waiver is in the national security interest.
       (d) Notification.--The Secretary shall notify the 
     congressional defense committees not later 15 days after the 
     date of the exercise of the waiver authority under subsection 
     (c).

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

     SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION 
                   PROGRAMS AND FUNDS.

       (a) Specification of CTR Programs.--For purposes of section 
     301 and other provisions of this Act, Cooperative Threat 
     Reduction programs are the programs specified in section 
     1501(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
     note).
       (b) Fiscal Year 2003 Cooperative Threat Reduction Funds 
     Defined.--As used in this title, the term ``fiscal year 2003 
     Cooperative Threat Reduction funds'' means the funds 
     appropriated pursuant to the authorization of appropriations 
     in section 301 for Cooperative Threat Reduction programs.
       (c) Availability of Funds.--Funds appropriated pursuant to 
     the authorization of appropriations in section 301 for 
     Cooperative Threat Reduction programs shall be available for 
     obligation for three fiscal years.

     SEC. 1302. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the $416,700,000 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2003 in section 301(23) for Cooperative 
     Threat Reduction programs, the following amounts may be 
     obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $70,500,000.
       (2) For strategic nuclear arms elimination in Ukraine, 
     $6,500,000.
       (3) For nuclear weapons transportation security in Russia, 
     $19,700,000.
       (4) For nuclear weapons storage security in Russia, 
     $39,900,000.
       (5) For activities designated as Other Assessments/
     Administrative Support, $14,700,000.
       (6) For defense and military contacts, $18,900,000.
       (7) For weapons of mass destruction infrastructure 
     elimination activities in Kazakhstan, $9,000,000.
       (8) For weapons of mass destruction infrastructure 
     elimination activities in Ukraine, $8,800,000.
       (9) For chemical weapons destruction in Russia, 
     $50,000,000.
       (10) For biological weapons facility dismantlement in the 
     States of the former Soviet Union $11,500,000.
       (11) For biological weapons facility security and safety in 
     the States of the former Soviet Union, $34,800,000.
       (12) For biological weapons collaborative research in the 
     States of the former Soviet Union, $8,700,000.
       (13) For personnel reliability programs in Russia, 
     $100,000.
       (14) For weapons of mass destruction proliferation 
     prevention in the States of the former Soviet Union, 
     $40,000,000.
       (b) Additional Funds Authorized for Certain Purposes.--Of 
     the funds authorized to be appropriated to the Department of 
     Defense for fiscal year 2003 in section 301(23) for 
     Cooperative Threat Reduction programs, $83,600,000 may be 
     obligated for any of the purposes specified in paragraphs (1) 
     through (4) and (9) of subsection (a) in addition to the 
     amounts specifically authorized in such paragraphs.
       (c) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2003 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (14) of subsection 
     (a) until 30 days after the date that the Secretary of 
     Defense submits to Congress a report on the purpose for which 
     the funds will be obligated or expended and the amount of 
     funds to be obligated or expended. Nothing in the preceding 
     sentence shall be construed as authorizing the obligation or 
     expenditure of fiscal year 2003 Cooperative Threat Reduction 
     funds for a purpose for which the obligation or expenditure 
     of such funds is specifically prohibited under this title or 
     any other provision of law.
       (d) Limited Authority To Vary Individual Amounts.--(1) 
     Subject to paragraphs (2) and (3), in any case in which the 
     Secretary of Defense determines that it is necessary to do so 
     in the national interest, the Secretary may obligate amounts 
     appropriated for fiscal year 2003 for a purpose listed in any 
     of the paragraphs in subsection (a) in excess of the amount 
     specifically authorized for such purpose (including amounts 
     authorized under subsection (b)).
       (2) An obligation of funds for a purpose stated in any of 
     the paragraphs in subsection (a) in excess of the specific 
     amount authorized for such purpose may be made using the 
     authority provided in paragraph (1) only after--
       (A) the Secretary submits to Congress notification of the 
     intent to do so together with a complete discussion of the 
     justification for doing so; and
       (B) 15 days have elapsed following the date of the 
     notification.
       (3) The Secretary may not, under the authority provided in 
     paragraph (1), obligate amounts for the purposes stated any 
     of paragraphs (5) through (13) of subsection (a) in excess of 
     115 percent of the amount specifically authorized for such 
     purposes.

     SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION 
                   OF REPORTS.

       No fiscal year 2003 Cooperative Threat Reduction funds may 
     be obligated or expended until 30 days after the date of the 
     submission of--
       (1) the report required to be submitted in fiscal year 2002 
     under section 1308(a) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-341); and
       (2) the update for the multiyear plan required to be 
     submitted for fiscal year 2001 under section 1205 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 22 U.S.C. 5952 note).

     SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES 
                   CARRIED OUT UNDER COOPERATIVE THREAT REDUCTION 
                   PROGRAMS.

       Section 1308(c) of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-341) is amended by 
     inserting at the end the following new paragraph:
       ``(6) To the maximum extent practicable, a description of 
     how revenue generated by activities carried out under 
     Cooperative Threat Reduction programs in recipient States is 
     being utilized, monitored, and accounted for.''.

     SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING 
                   OF FISSILE MATERIAL STORAGE FACILITY.

       No funds authorized to be appropriated for Cooperative 
     Threat Reduction programs for any fiscal year may be used for 
     the design, planning, or construction of a second wing for a 
     storage facility for Russian fissile material.

     SEC. 1306. SENSE OF CONGRESS AND REPORT REQUIREMENT REGARDING 
                   RUSSIAN PROLIFERATION TO IRAN.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) Russian proliferation to Iran constitutes a clear 
     threat to the national security and vital interests of the 
     United States and undermines the purpose and goals of 
     Cooperative Threat Reduction programs;

[[Page H5581]]

       (2) such proliferation consists primarily of nuclear and 
     missile technology, goods, and know-how, and dual-use items 
     that could contribute to the development of weapons of mass 
     destruction and ballistic missiles;
       (3) because of ongoing Russian assistance, the intelligence 
     community estimates that Iran could attempt to launch an 
     intercontinental ballistic missile by 2005, and could possess 
     a nuclear weapon by 2010;
       (4) Russian proliferation is providing Iran with the 
     capability to strike United States military forces, 
     interests, allies, and friends in the region with weapons-of-
     mass-destruction-tipped ballistic missiles;
       (5) the issue of Russian proliferation to Iran has been 
     raised by United States officials at the highest levels of 
     the Russian Government;
       (6) Iran has long been identified as a State sponsor of 
     terrorism by the United States because of its support of 
     foreign terrorist organizations, and the combination of 
     terrorist organizations and weapons of mass destruction 
     constitutes a grave threat to the national security of the 
     United States;
       (7) Russian proliferation to Iran raises serious questions 
     regarding the intentions of the Russian Government, and its 
     commitment to nonproliferation and improved relations with 
     the United States;
       (8) Russian proliferation to Iran could undermine 
     Congressional support for Cooperative Threat Reduction 
     programs; and
       (9) the President must safeguard United States national 
     security and demonstrate United States resolve and commitment 
     to stopping the proliferation of weapons of mass destruction 
     and ballistic missiles through clear, firm, and coherent 
     policies and strategies that employ the full range of 
     diplomatic and economic tools at his disposal, both positive 
     and negative, to halt the serious and continuing problem of 
     Russian proliferation.
       (b) Report.--Not later than March 15 of 2003 through 2009, 
     the President shall submit to Congress a report (in 
     unclassified and classified form as necessary) describing in 
     detail Russian proliferation of weapons of mass destruction 
     and ballistic missile goods, technology, and know-how, and of 
     dual-use items that may contribute to the development of 
     weapons of mass destruction and ballistic missiles, to Iran 
     and to other countries during the year preceding the year in 
     which the report is submitted. The report shall include--
       (1) a net assessment prepared by the Office of Net 
     Assessment of the Department of Defense; and
       (2) a detailed description of the following:
       (A) The number, type, and quality of direct and dual-use 
     weapons of mass destruction and ballistic missile goods, 
     items, and technology being transferred.
       (B) The form, location, and manner in which such transfers 
     take place.
       (C) The contribution that such transfers could make to the 
     recipient States' weapons of mass destruction and ballistic 
     missile programs, and how soon such States will test, 
     possess, and deploy weapons of mass destruction and ballistic 
     missiles.
       (D) The impact that such transfers have, or could have, on 
     United States national security, on regional friends, allies, 
     and interests, and on United States military forces deployed 
     in the region to which such transfers are being made.
       (E) The actions being taken by the United States to counter 
     and defend against capabilities developed by the recipient 
     States as a result of such transfers.
       (F) The strategy, plan, or policy incorporating the full 
     range of policy tools available that the President intends to 
     employ to halt Russian proliferation, the rationale for 
     employing such tools, and the timeline by which the President 
     expects to see material progress in ending Russian 
     proliferation of direct and dual-use weapons of mass 
     destruction and missile goods, technologies, and know-how.

     SEC. 1307. PROHIBITION AGAINST USE OF COOPERATIVE THREAT 
                   REDUCTION FUNDS OUTSIDE THE STATES OF THE 
                   FORMER SOVIET UNION.

       No Cooperative Threat Reduction funds authorized or 
     appropriated for any fiscal year may be used for threat 
     reduction projects, programs, or activities in countries 
     other than the States of the former Soviet Union.

     SEC. 1308. LIMITED WAIVER OF RESTRICTION ON USE OF FUNDS.

       (a) Waiver Authority.--(1) The restriction described in 
     subsection (d)(5) of section 1203 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1779; 22 U.S.C. 5952) shall not apply with respect 
     to United States assistance to Russia if the President 
     submits to Congress a written certification that waiving the 
     restriction is important to the national security interests 
     of the United States.
       (2) The authority under paragraph (1) shall expire on 
     December 31, 2005.
       (b) Report.--Not later than 30 days after the date that the 
     President applies the waiver authority under subsection (a), 
     the President shall submit to Congress a report (in 
     classified and unclassified form as necessary) describing--
       (1) the arms control agreements with which Russia is not 
     committed to complying, the form or forms of noncommittal, 
     and detailed evidence of such noncommittal;
       (2) why use of the waiver of authority was important to 
     protect national security interests; and
       (3) a strategy, plan, or policy incorporating the full 
     range of policy tools available to the President for 
     promoting Russian commitment to, and compliance with, all 
     relevant arms control agreements.

     SEC. 1309. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF 
                   REPORT ON DEFENSE AND MILITARY CONTACTS 
                   ACTIVITIES.

       Not more than 50 percent of fiscal year 2003 Cooperative 
     Threat Reduction Funds may be obligated or expended for 
     defense and military contacts activities until the Secretary 
     of Defense submits to Congress a report describing in detail 
     the operation and success of such activities carried out 
     under Cooperative Threat Reduction programs during fiscal 
     years 2001 and 2002. Such report shall include a description 
     of--
       (1) the amounts obligated or expended for such activities;
       (2) the purposes, goals, and objectives for which such 
     amounts were obligated and expended;
       (3) a description of the activities carried out, including 
     the forms of assistance provided, and the justification for 
     each form of assistance provided;
       (4) the success of each activity, including the goals and 
     objectives achieved for each;
       (5) a description of participation by private sector 
     entities in the United States in carrying out such 
     activities, and the participation of any other Federal 
     department or agency in such activities; and
       (6) any other information that the Secretary considers 
     relevant to provide a complete description of the operation 
     and success of activities carried out under Cooperative 
     Threat Reduction programs.

                TITLE XIV--UTAH TEST AND TRAINING RANGE

     SEC. 1401. DEFINITION OF UTAH TEST AND TRAINING RANGE.

       In this title, the term ``Utah Test and Training Range'' 
     means those portions of the military operating area of the 
     Utah Test and Training Area located solely in the State of 
     Utah. The term includes the Dugway Proving Ground.

     SEC. 1402. MILITARY OPERATIONS AND OVERFLIGHTS AT UTAH TEST 
                   AND TRAINING RANGE.

       (a) Findings.--The Congress finds the following:
       (1) The testing and development of military weapons systems 
     and the training of military forces are critical to ensuring 
     the national security of the United States.
       (2) The Utah Test and Training Range is a unique and 
     irreplaceable national asset at the core of the test and 
     training mission of the Department of Defense.
       (3) Areas designated as wilderness study areas are located 
     near lands withdrawn for military use and are beneath special 
     use airspace critical to the support of military test and 
     training missions at the Utah Test and Training Range.
       (4) Continued unrestricted access to the special use 
     airspace and lands that comprise the Utah Test and Training 
     Range is a national security priority and is not incompatible 
     with the protection and proper management of the natural, 
     environmental, cultural, and other resources of such lands.
       (b) Overflights.--(1) Nothing in this title, the Wilderness 
     Act (16 U.S.C. 1131 et seq.), or other land management laws 
     generally applicable to federally designated wilderness areas 
     or wilderness study areas in the Utah Test and Training Range 
     shall restrict or preclude low-level overflights, low-level 
     military overflights and operations of military aircraft, 
     helicopters, unmanned aerial vehicles, military overflights 
     or military overflights and operations that can be seen or 
     heard within those areas.
       (2) Paragraph (1) precludes any restriction regarding 
     altitude or airspeed, noise level, supersonic flight, route 
     of flight, time of flight, seasonal usage, or numbers of 
     flights of any military aircraft, helicopters, unmanned 
     aerial vehicles, missiles, aerospace vehicles, and other 
     military weapons systems over federally designated wilderness 
     areas or wilderness study areas in the Utah Test and Training 
     Range.
       (3) In this subsection, the term ``low-level'' includes any 
     flight down to and including 10 feet above ground level.
       (c) Special Use Airspace and Training Routes.--Nothing in 
     this title, the Wilderness Act, or other land management laws 
     generally applicable to federally designated wilderness areas 
     or wilderness study areas in the Utah Test and Training Range 
     shall restrict or preclude the designation of new units of 
     special use airspace, the expansion of existing units of 
     special use airspace, or the use or establishment of military 
     training routes over federally designated wilderness areas or 
     wilderness study areas in the Utah Test and Training Range.
       (d) Communications and Tracking Systems.--Nothing in this 
     title, the Wilderness Act, or other land management laws 
     generally applicable to federally designated wilderness areas 
     or wilderness study areas in the Utah Test and Training Range 
     shall be construed to require the removal of existing 
     communications, instrumentation, or electronic tracking 
     systems from these areas, to prevent any required maintenance 
     of such systems, or to prevent the installation of new 
     communication, instrumentation, or other equipment necessary 
     for effective testing and training to meet military 
     requirements so long as the installation and maintenance of 
     such systems do not require construction of any permanent 
     roads in any federally designated wilderness area or 
     wilderness study area.
       (e) Emergency Access and Response.--(1) Nothing in this 
     title, the Wilderness Act, or


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